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Using the data in the following table, 2 , estimate the a. Average return and volatility for each stock. b. Covariance between the stocks. c.
Using the data in the following table, 2 , estimate the a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. ----- a. Estimate the average return and volatility for each stock. The average return of stock A is (Round to two decimal places.) The average return of stock B is %. (Round to two decimal places.) 1 The standard deviation of stock A is (Round to five decimal places.) Data table The standard deviation of stock B is (Round to five decimal places.) b. Estimate the covariance between the stocks. (Click on the following icon in order to copy its contents into a spreadsheet.) The covariance is . (Round to five decimal places.) 2010 Year Stock A Stock B -8% 2011 15% 22% 2012 5% 43% 2013 -9% - 4% 2014 3% - 14% 2015 13% 29% c. Estimate the correlation between these two stocks. 29% The correlation is (Round to five decimal places.) Print Done
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