Given the following returns for Stock X and stock Y Stock X % return Stock Y % return 2 1 4 3 6 5 8 6 12 9 Calculate the variance, and standard deviation of each stock return, assume the above is a...

Given the following returns for Stock X and stock Y

1. Calculate the variance, and standard deviation of each stock return, assume the above is a sample (i.e. divide by n-1 instead of n). Interpret the results for x only.


2. Calculate the covariance, and correlation coefficient between both stocks


3. Assume a portfolio made of both stocks (60% in stock X and 40% in stock Y) calculate the expected return and standard deviation of the portfolio.