7) Over the past 5 months, Salt, Pepper and the Market had the following monthly...

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7) Over the past 5 months, Salt, Pepper and the Market had the following monthly returns: MONTH Salt Pepper Market 10 .25 16 .06 .20 -.03 January February March April May .04 15 .21 .05 18 .20 .08 -.01 .10 Calculate the return and standard deviation for Salt and Pepper. Assume the observations are the population rather than a sample Calculate the correlation (coefficient) between Salt and Pepper. Pepper has a beta of 1.06, You invest equal amounts in Salt and Pepper. Find the return, beta and the standard deviation of the portfolio. You will need to calculate the beta for Salt. a. b. c

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