Estimate average return and volatility

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Reference no: EM1368334

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%

Reference no: EM1368334

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