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Question 284  covariance, correlation

The following table shows a sample of historical total returns of shares in two different companies A and B.

Stock Returns
Total effective annual returns
Year ##r_A## ##r_B##
2007 0.2 0.4
2008 0.04 -0.2
2009 -0.1 -0.3
2010 0.18 0.5
 

What is the historical sample covariance (##\hat{\sigma}_{A,B}##) and correlation (##\rho_{A,B}##) of stock A and B's total effective annual returns?




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