Find the monthly returns for the two stocks

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Reference no: EM131495390

Below are a set of prices for Facebook (FB) and Southwest Airlines (LUV) over the last 3 months. Keep in mind that we normally would not calculate the below statistics for such a short time span, as your answers will be heavily skewed by recent market activity.

FB LUV

12/1/16 115.05 49.84

1/1/17 130.32 52.31

2/1/17 135.54 57.80

3/1/17 137.42 58.88

a) Find the monthly returns for the two stocks.

b) Find the annualized expected return for each stock.

c) Find the annualized volatility for each stock.

d) Find the correlation between the two stocks (note that you want to use monthly, not annualized, standard deviation here).

Reference no: EM131495390

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