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The past five years of stock returns for SCG and VCX are provided in the following table. The correlation between SCG and VCX is 0.54.

The past five years of stock returns for SCG and VCX are provided in the following table.

The correlation between SCG and VCX is 0.54.

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A. What is the average annual return for SCG and VCX?

B. What is the standard deviation of return for SCG and VCX?

C. Which stock would you invest? Explain.

Year 2015 2016 2017 2018 2019. SCG VCX 10.10% 9.60% 9.90% 5.50% 4.60% 15.30% -1.50% -4.30% _.7.80%___4.80%- O

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