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  3. b) the table below presents the expected returns f

b) The table below presents the expected returns for stocks X and Y for a...

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Finance

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b) The table below presents the expected returns for stocks X and Y for a period of six years. Using the data in table, estimate: (i) the average return and volatility for each stock, (ii) the covariance between the stocks, and (iii) the correlation between these two stocks. Year 1 2 3 Stock X 0.22 -0.04 -0.02 Stock Y -0.16 0.14 0.24 4 0.07 -0.05 5 0.2 -0.08 6 -0.11 0.26

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