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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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