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You are given the following information concerning a stock and the market: Returns Year Market Stock 2005 2006 2007 2008 2009 2010 20% 16 22

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You are given the following information concerning a stock and the market: Returns Year Market Stock 2005 2006 2007 2008 2009 2010 20% 16 22 -8 35 15 32% 16 4 -19 16 24 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 stock's beta. (Use excel to complete the problem. Round your correlation answer to 2 decimal places and Beta answer to 4 decimal places.) Correlation Beta

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