Using the information in the following table estimate the, Ask an Expert

Economics

Using the information in the following table, estimate (a) the average return and volatility for each stock, (b) the covariance between the stocks, and (c) the correlation between these two stocks.

Realized Returns
Year Stock A Stock B
1998 -10% 21%
1999 20% 30%
2000 5% 7%
2001 -5% -3%
2002 2% -8%
2003 9% 25%

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9293641

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