You are given the following information concerning a stock and the market:

Returns

Year Market Stock

2008 18 % 34 %

2009 11 27

2010 12 3

2011 –14 –21

2012 37 16

2013 15 22

1. Calculate the average return and standard deviation for the market and the stock. (Use excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 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. Do not round intermediate calculations. Round your Correlation answer to 2 decimal places and Beta answer to 4 decimal places.) Correlation Beta