Risk and Return Analysis:

Youre given following information:

Now compute the following: 1. Mean and standard of Stocks and Market index

2. Compute the variance-covariance matrix

3. Compute the correlation coefficient matrix

4. Compute the beta (systematic risk) of both stocks.

Year Returns on Returns onReturns on Stock X (Y) | Stock Y (%) | Market Index 10 2.5 3.5 4 4 10 12 10 15