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Using the data in the following table, Eestimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between
Using the data in the following table, Eestimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. ED a. Estimate the average return and volatility for each stock. The average return of stock Ais %. (Round to two decimal places.) Data table The average return of stock B is %. (Round to two decimal places.) The standard deviation of stock A is (Round to five decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 2012 2013 2014 Stock A -9% 17% 9% - 3% 3% Stock B 23% 6% 31% - 4% - 13% The standard deviation of stock B is. (Round to five decimal places.) 2015 8% 25% b. Estimate the covariance between the stocks. The covariance is (Round to five decimal places.) c. Estimate the correlation between these two stocks. Print Done The correlation is (Round to five decimal places.)
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