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Question 1: You observed the following daily returns for two companies, ABC and XYZ ABC XYZ Mon 0.05 0.04 Tue 0.16 0.18 Wed 0.15 0.06

Question 1: You observed the following daily returns for two companies, ABC and XYZ
ABC XYZ
Mon 0.05 0.04
Tue 0.16 0.18
Wed 0.15 0.06
Thu 0.03 0.12
Fri 0.06 0.05
1) Calculation the following for each stock
a) 5 day Cumulative return
b) Geometric mean daily return
c) Arthemetic mean daily return
d) Std deviation of daily returns
e) Coefficient of variation
2) Calculate the covariance and correlation between the 2 stocks
a) Covariance
b) Correlation

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