The annual returns for two stocks are shown below for the period 2010-2014 Which of the following statements is most correct? Year 2010 2011 2012 2013 2014 Stock 1 10.00% 2.00% -5.00% 21.00% 8.00% Stock 2 15.00% 20.00% 0.00% 12.00% 3.00% The covariance is equal to 440, which indicates that they tend to move in the same direction, but it is difficult to tell the strength of the relationship The correlation coefcient is equal to 0.33 which indicates that the stocks tend perform above or below their means at the same time. The expected return of an equally weighted portfolio is equal to 8.25%