Covariance and correlation between google and walmart

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Reference no: EM133075914

Based on the monthly data of Google (GOOG) and WalMart (WMT) from Sep. 2016 to Sep. 2021.

Please answer the following questions:

Q1. Please calculate covariance and correlation between Google and WalMart.

Q2. Please find the optimal portfolio (calculate WGoog and WWMT) corresponding to 0.8% of monthly return.

Q3. If the correlation changes to -.5, the portfolio in Q2 should become better. Do you agree? Why?

Reference no: EM133075914

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