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EXCEL Spreadsheets are useful for computing statis...




EXCEL Spreadsheets are useful for computing statistics: averages, standard deviation, variance, and correlation are included as built-in functions. Below is recent monthly stock return data for ExxonMobil (XOM) and Microsoft (MSFT). Using a spreadsheet and its functions, compute the average, variance, standard deviation, and correlation between the returns for these stocks. What does the correlation between the returns imply for a portfolio containing both stocks? MONTH XOM RETURN MSFT RETURN November 4.6% 10.4% October 0.1% 13.6% September 1.9% 10.3% August 3.3% 13.8% July 4.4% 9.3% June 1.6% 5.5% May 0.7% 2.1% April 9.4% 23.9% March 0.1% 7.3% February 3.2% 3.4%


Paper#4142 | Written in 18-Jul-2015

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