GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15% Ford stock produced the following monthly returns ( Jan.- May): 1%, 10%, 6%, 3% and 2%. 1) Calculate the average return for each stock 2) Calculate the standard deviation of monthly return for each stock. 3) Calculate the correlation coefficient b/w GM and Ford Stock. PLEASE SHOW ME THE STEPS. THANK YOU.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15%

Ford stock produced the following monthly returns ( Jan.- May): 1%, 10%, 6%, 3% and 2%.

1) Calculate the average return for each stock

2) Calculate the standard deviation of monthly return for each stock.

3) Calculate the correlation coefficient b/w GM and Ford Stock.

PLEASE SHOW ME THE STEPS. THANK YOU.

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