Question

Using the table below find average return and standard deviation for Starbucks and Abbott, and covariance and correlation of their returns.

Year	Starbucks	Abbott
1989	23.65	65
1990	-47.37	-33.79
1991	35	29.88
1992	86	-21
1993	22.36	32
1994	25.37	-4.29
1995	54	38.32
1996	65	-6.36
1997	11.67	33.33
1998	36.19	23.55

Select one:

a.
Average returns: Starbucks=31.19% ; Abbott = 15.66%
Standard deviations: Starbucks=35.63% ; Abbott = 30.67%
Covariance = 110.71
Correlation = 0.10

b. Average returns: Starbucks=71.19% ; Abbott = 25.66%
Standard deviations: Starbucks=48.63% ; Abbott = 21.67%
Covariance = 213.71
Correlation = 0.23

Answer 1