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QUESTION 1 The following table contains yearly returns on Target stock and on BMW stock from 2017 to 2020: Year Return on Target (%) Return

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QUESTION 1 The following table contains yearly returns on Target stock and on BMW stock from 2017 to 2020: Year Return on Target (%) Return on BMW (%) 2017 13 16 2018 7 21 2019 15 13 2020 21 14 1.1. Calculate the standard deviation of the return on Target stock and the standard deviation of the return on BMW stock; 1.2. Calculate the Return per unit of Risk Criterion (RRC) for the return on Target stock and for the return on BMW stock; 1.8. Would you invest in BMW or Target? Why? 1.4. Compute the covariance between the return on Target and the return on BMW. Is the relationship between the return on Target and that on BMW positive? Why or why not? 1.5. Compute the coefficient of correlation between the return on Target and the return on BMW. Is the relationship between the return on Target and the return on BMW weak? Why or why not? QUESTION 1 The following table contains yearly returns on Target stock and on BMW stock from 2017 to 2020: Year Return on Target (%) Return on BMW (%) 2017 13 16 2018 7 21 2019 15 13 2020 21 14 1.1. Calculate the standard deviation of the return on Target stock and the standard deviation of the return on BMW stock; 1.2. Calculate the Return per unit of Risk Criterion (RRC) for the return on Target stock and for the return on BMW stock; 1.8. Would you invest in BMW or Target? Why? 1.4. Compute the covariance between the return on Target and the return on BMW. Is the relationship between the return on Target and that on BMW positive? Why or why not? 1.5. Compute the coefficient of correlation between the return on Target and the return on BMW. Is the relationship between the return on Target and the return on BMW weak? Why or why not

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