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You are given the following information concerning a stock and the market: Returns Year Market Stock 2011 18 % 31 % 2012 11 27 2013
You are given the following information concerning a stock and the market:
Returns | ||||||
Year | Market | Stock | ||||
2011 | 18 | % | 31 | % | ||
2012 | 11 | 27 | ||||
2013 | 12 | 3 | ||||
2014 | -14 | -21 | ||||
2015 | 37 | 16 | ||||
2016 | 15 | 22 | ||||
a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. 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. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)
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