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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

15

%

27

%

2012

14

30

2013

15

6

2014

−14

−24

2015

37

16

2016

15

25

a. 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.)

b. 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.)

Please answer in Excel.

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Answer #1

A Year B Market с Stock 1 2 44 45 46 47 48 49 50 51 3 15% 14% 15% -14% 37% 15% 27% 30% 6% -24% 4 5 16% 6 25% 16.22% ESTDEV.S(

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