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Use the accompanying data to complete parts a through c below.

a. Compute the correlation of monthly returns between Stantec and Canadian Tire.

b. Compute the annual standard deviation of Stantec and Canadian Tire.

c. Compute the annual variance and standard deviation of a portfolio of 70% Stantec stock and 30% Canadian Tire stock.

1 2 3 Dec-17 4 Nov-17 5 Oct-17 6 Sep-17 7 Aug 17 8 Jul-17 9 Jun-17 10 May-17 11 Apr-17 12 Mar-17 13 Feb-17 14 Jan-17 15 Dec-16 16 Nov-16 17 Oct-16 18 Sep-16 19 Aug-16 20 Jul-16 21 Jun-16 22 May-16 23 Apr-16 24 Mar-16 25 Feb-16 26 Jan-16 27 Dec-15 28 Nov-15 29 Oct-15 30 Sep-15 31 Aug-15 32 Jul -15 33 Jun-15 34 May-15 35 Apr-15 36 Mar-15 37 Feb-15 38 Jan-15 39 Dec-14 40 Nov-14 41 Oct-14 42 Sep-14 43 Aug-14 44 Jul-14 45 Jun-14 46 May-14 47 Apr-14 48 Mar-14 49 Feb-14 50 Jan-14 51 Dec-13 52 Nov-13 53 Oct-13 54 Sep-13 55 Aug-13 56 Jul-13 57 Jun-13 58 May-13 59 Apr-13 60 Mar-13 61 Feb-13 62 Jan-13 63 64 Retums (%) Stan tec Canadian Tire 0.46 0.53 -5.05 3.41 6.83 1.91 -0.2 5.1 9.39 4.33 -2.48 -3.56 4.51 -4.03 -10.82 -7.35 1.87 5.46 0.76 3.73 -1.81 10.56 3.17 -0.63 -5.38 -0.46 20.14 7.79 -2.85 -0.76 -1.41 -2.2 -5.9 -1.68 6.46 -2.53 -8.9 -1.71 6.93 5.22 -2.19 1.09 16.94 2.77 -17.34 15.85 -0.23 -3.39 -0.78 -5.56 5.39 9.28 12.86 -4.19 -5.38 -3.14 -15.2 -4.56 -0.07 -2.39 6.1 3.59 5.55 1.31 7.89 -0.96 -5.04 -2.04 2.14 12.88 -1.85 -4.52 -3.83 4.34 -7.02 4.26 -2.04 7.69 -1.11 2.16 7.11 8.97 5.27 1.18 -1.53 -2.12 3.31 -2.44 -3.33 3.28 -0.41 4.39 0.1 5.5 3.43 -4.44 4.16 -0.22 10.91 3.4 18.5 6.08 8.86 2.4 1.73 5.83 7.81 6.76 0.93 -4.95 2.11 12.8 -3.14 1.21 5.02 6.52 4.43 -0.37 3.58 0.06

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