Question
You are given the following information concerning a stock and the market: Returns Year Market Stock 2014 14 % 26 % 2015 18 18 2016
You are given the following information concerning a stock and the market:
Returns | ||||||
Year | Market | Stock | ||||
2014 | 14 | % | 26 | % | ||
2015 | 18 | 18 | ||||
2016 | 22 | 4 | ||||
2017 | 12 | 21 | ||||
2018 | 35 | 16 | ||||
2019 | 15 | 26 | ||||
a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. Calculate the correlation between the stock and the market, as well as the stocks beta. (Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)
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