Question

In: Finance

You are given the following information concerning a stock and the market: Returns Year Market Stock...

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

Returns
Year Market Stock
2011 14 % 26 %
2012 10 10
2013 20 3
2014 −15 −31
2015 35 16
2016 15 18

a. Calculate the average return and standard deviation for the market and the stock.

b. Calculate the correlation between the stock and the market, as well as the stock’s beta.

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