Step Three: Get the covariance. Explain your results. (i.e. what does covariance tell you?) covariance = 2008 Return Deviations Asset A-Return Deviations Market N-1 Year 2004 2007 2005 2008 2006 Return Deviations Asset H Market 0.084 0.052 0.059 0.022 0.049 0.032 -0.086 -0.048 -0.106 -0.058 Covariance= Dev H*DevMkt 0.000019079424 0.000001684804 0.000002458624 0.000017040384 0.000037797904 Step Four: Get Correlation. Explain your results (i.e. what does correlation tell you.) Covariance Correlation =- Oi * Omarket Step Five: Estimate Beta. Explain the meaning of Beta. What's the logic behind your estimation? 0; Bi = Correlation *- Omarket