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Posted on Sep 27, 2024

Use the accompanying data to complete parts a through c below. a. Compute the correlation of monthly returns between Stantec and Canadian Tire. b. Compute

Use the accompanying data to complete parts a through c below.

a. Compute the correlation of monthly returns between Stantec and Canadian Tire.

b. Compute the annual standard deviation of Stantec and Canadian Tire.

c. Compute the annual variance and standard deviation of a portfolio of 70% Stantec stock and 30% Canadian Tire stock.

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A B 1 2 3 Dec-17 4 Nov-17 5 Oct-17 6 Sep-17 7 Aug-17 8 Jul-17 9 Jun-17 10 May-17 11 Apr-17 12 Mar-17 13 Feb-17 14 Jan-17 15 Dec-16 16 Nov-16 17 Oct-16 18 Sep-16 19 Aug-16 20 Jul-16 21 Jun-16 22 May-16 23 Apr-16 24 Mar-16 25 Feb-16 26 Jan-16 27 Dec-15 28 Nov-15 29 Oct-15 30 Sep-15 31 Aug-15 32 Jul-15 33 Jun-15 34 May-15 35 Apr-15 36 Mar-15 37 Feb-15 38 Jan-15 39 Dec-14 40 Noy-14 41 Oct-14 42 Sep-14 43 Aug-14 44 Jul-14 45 Jun-14 46 May-14 47 Apr-14 48 Mar-14 49 Feb-14 50 Jan-14 51 Dec-13 52 Nov-13 53 Oct-13 54 Sep-13 55 Aug-13 56 Jul-13 57 Jun-13 58 May-13 59 Apr-13 60 Mar-13 61 Feb-13 62 Jan-13 Returns (%) Stantec Canadian Tire 0.46 0.53 -5.05 3.41 6.83 1.91 -0.2 5.1 9.39 4.33 -2.48 -3.56 4.51 -4.03 -10.82 -7.35 1.87 5.46) 0.76 3.731 -1.81 10.56 3.17 -0.63 -5.38 -0.46 20.141 7.791 -2.85 -0.76 -1.41 -2.2 5.9 -1.68 6.46 -2.53 -8.9 -1.71 6.93 5.221 -2.19 1.09 16.94 2.77 -17.34 15.85 -0.23 -3.39 -0.78 -5.56 5.39 9.28 12.86 -4.19 -5.38 -3.14 -15.2 -4.56 -0.07 6.1 3.59 5.55 1.31 7.89 -0.96 -5.04 -2.04 2.14 12.88 -1.85 -4.52 -3.83 -4.34 -7.02 4.26 -2.04 7.69 -1.11 2.16 7.11 8.97 5.27 1.18 -1.53 -2.12 3.31 -2.44 -3.33 3.28 -0.41 4.39 0.1 5.5) 3.43 -4.44 -4.16 -0.22 10.91 3.4 18.5 6.08 8.86 2.4 1.73 5.83 7.81 6.76 0.93 -4.95 2.11 12.8 -3.14 1.21 5.02 6.52 4.43 -0.37 3.58) 0.06 -2.39 A B 1 2 3 Dec-17 4 Nov-17 5 Oct-17 6 Sep-17 7 Aug-17 8 Jul-17 9 Jun-17 10 May-17 11 Apr-17 12 Mar-17 13 Feb-17 14 Jan-17 15 Dec-16 16 Nov-16 17 Oct-16 18 Sep-16 19 Aug-16 20 Jul-16 21 Jun-16 22 May-16 23 Apr-16 24 Mar-16 25 Feb-16 26 Jan-16 27 Dec-15 28 Nov-15 29 Oct-15 30 Sep-15 31 Aug-15 32 Jul-15 33 Jun-15 34 May-15 35 Apr-15 36 Mar-15 37 Feb-15 38 Jan-15 39 Dec-14 40 Noy-14 41 Oct-14 42 Sep-14 43 Aug-14 44 Jul-14 45 Jun-14 46 May-14 47 Apr-14 48 Mar-14 49 Feb-14 50 Jan-14 51 Dec-13 52 Nov-13 53 Oct-13 54 Sep-13 55 Aug-13 56 Jul-13 57 Jun-13 58 May-13 59 Apr-13 60 Mar-13 61 Feb-13 62 Jan-13 Returns (%) Stantec Canadian Tire 0.46 0.53 -5.05 3.41 6.83 1.91 -0.2 5.1 9.39 4.33 -2.48 -3.56 4.51 -4.03 -10.82 -7.35 1.87 5.46) 0.76 3.731 -1.81 10.56 3.17 -0.63 -5.38 -0.46 20.141 7.791 -2.85 -0.76 -1.41 -2.2 5.9 -1.68 6.46 -2.53 -8.9 -1.71 6.93 5.221 -2.19 1.09 16.94 2.77 -17.34 15.85 -0.23 -3.39 -0.78 -5.56 5.39 9.28 12.86 -4.19 -5.38 -3.14 -15.2 -4.56 -0.07 6.1 3.59 5.55 1.31 7.89 -0.96 -5.04 -2.04 2.14 12.88 -1.85 -4.52 -3.83 -4.34 -7.02 4.26 -2.04 7.69 -1.11 2.16 7.11 8.97 5.27 1.18 -1.53 -2.12 3.31 -2.44 -3.33 3.28 -0.41 4.39 0.1 5.5) 3.43 -4.44 -4.16 -0.22 10.91 3.4 18.5 6.08 8.86 2.4 1.73 5.83 7.81 6.76 0.93 -4.95 2.11 12.8 -3.14 1.21 5.02 6.52 4.43 -0.37 3.58) 0.06 -2.39