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You are interested in investing in Australian shares and decide to investigate the shares of two Australian companies: Afterpay Limited (APT.AX) and Commonwealth Bank of

You are interested in investing in Australian shares and decide to investigate the shares of two Australian companies: Afterpay Limited (APT.AX) and Commonwealth Bank of Australia (CBA.AX). Below are the opening prices, closing prices for APT and CBA for 2020 and dividends paid by CBA during 2020. APT did not pay any dividends in 2020.

APT

CBA

Month

Opening Price

Closing Price

Opening Price

Closing Price

Jan

29.28

38.55

72.70

85.26

Feb

37.57

33.17

74.38

81.78

Mar

32.18

18.80

71.24

61.82

Apr

19.85

31.20

71.13

62.69

May

29.75

47.41

69.30

63.75

June

46.53

60.99

72.06

69.42

July

60.49

68.54

72.39

71.20

Aug

68.50

91.44

69.23

68.28

Sep

89.80

79.99

73.95

63.61

Oct

81.85

96.69

71.00

69.02

Nov

96.50

95.01

74.81

79.07

Dec

95.80

118.00

78.06

82.11

Dividends

19/02/2020

15/08/2020

CBA

2.00

0.98

For the rest of the question please show relevant formulas and all calculations.

5. Calculate the correlation coefficients between APT and CBA. 1 marks

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