Question
You are given the following information concerning a stock and the market: Returns Year Market Stock 2005 16 % 28 % 2006 15 31 2007
You are given the following information concerning a stock and the market: Returns Year Market Stock 2005 16 % 28 % 2006 15 31 2007 16 7 2008 -14 -25 2009 37 16 2010 15 26 1.Calculate the average return and standard deviation for the market and the stock. (Use excel to complete the problem. Round your answer to 2 decimal place. Omit the "%" sign in your response.) Market Stock Average return % % Standard deviation % % 2.Calculate the correlation between the stock and the market, as well as the stocks beta. (Use excel to complete the problem. Round your correlation answer to 4 decimal places and Beta answer to 4 decimal places.) Correlation: Beta:
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