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The following table shows historical beginning-of-year prices for two stocks. A B C 1 Year Stock A Stock B 2 2014 35.55 578.93 3 2015
The following table shows historical beginning-of-year prices for two stocks.
A | B | C | |
1 | Year | Stock A | Stock B |
2 | 2014 | 35.55 | 578.93 |
3 | 2015 | 33.62 | 569.41 |
4 | 2016 | 32.99 | 593.35 |
5 | 2017 | 35.23 | 616.54 |
6 | 2018 | 32.93 | 541.59 |
7 | 2019 | 34.7 | 527.67 |
8 | 2020 | 30.29 | 486.35 |
9 | 2021 | 30.32 | 584.37 |
10 | 2022 | 31.2 | 637.75 |
Part 1
Calculate the annual returns. What was the arithmetic average annual return for stock B?
Part 2
What was the variance for stock B?
Part 3
What was the standard deviation for stock B?
Part 4
What was the covariance of returns?
Part 5
What was the correlation coefficient?
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