You are given the following information concerning a stock and the market: Returns
YearMarket Stock
200817% 29%
200916 32
201017 8
2011–15 –26
201237 16
201315 27
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.)
MarketStock
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