The following are the monthly rates of return for Madison Cookies and for Spphine Electric during a six-month period:

Month

Madison Cookies

(MS inshort)

Sophie Electric

(SE in Short)

1

-0.04

0.07

2

0.06

-0.02

3

-0.07

-0.10

4

0.12

0.15

5

-0.02

-0.06

6

0.05

0.02

Please keep 4 numbers after the decimal point in your answers.

1.a. (4 points) Compute monthly average return for each stock.

1.b. (8 points) Compute standard deviations of returns for each stock

1.c. (6 points) Compute covariance between the returns of the two stock