1. Calculate the covariance between profits and marketcapitalization and what does the covariance indicate about therelationship between profits and market capitalization? (positiveor negative).

2. Calculate the correlation coefficient between profits andmarket capitalization and what does this indicate about therelationship between profits and market capitalization?(strong/weak/non-linear relationship) .

Company	Profits ($ millions)	Market Capitalization ($ millions)
Alliant Techsystems	313.20	1891.90
Amazon.com	631.00	81458.60
AmerisourceBergen	706.60	10087.60
Avis Budget Group	-29.00	1175.80
Boeing	4018.00	55188.80
Cardinal Health	959.00	14115.20
Cisco Systems	6490.00	97376.20
Coca-Cola	8572.00	157130.50
ConocoPhillips	12436.00	95251.90
Costco Wholesale	1462.00	36461.20
CVS Caremark	3461.00	53575.70
Delta Air Lines	854.00	7082.10
Fidelity National Financial	369.50	3461.40
FMC Technologies	399.80	12520.30
Foot Locker	278.00	3547.60
General Motors	9190.00	32382.40
Harley-Davidson	599.10	8925.30
HCA Holdings	2465.00	9550.20
Kraft Foods	3527.00	65917.40
Kroger	602.00	13819.50
Lockheed Martin	2655.00	26651.10
Medco Health Solutions	1455.70	21865.90
Owens Corning	276.00	3417.80
Pitney Bowes	617.50	3681.20
Procter & Gamble	11797.00	182109.90
Ralph Lauren	567.60	12522.80
Rockwell Automation	697.80	10514.80
Rockwell Collins	634.00	8560.50
United Stationers	109.00	1381.60
United Technologies	4979.00	66606.50
UnitedHealth Group	5142.00	53469.40