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Returns on the Stock of First Boston and Midas Metals

Question 51

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Returns on the stock of First Boston and Midas Metals for the years 2017-2020 are shown below.
 First  Boston  Midas Metals  Portfolio 201718.00%26.00%201932.00%5.00%201918.009/3.00%20201.00910.009\begin{array} { | r | r | r | r | } \hline & \begin{array} { r } \text { First } \\\text { Boston }\end{array} & \text { Midas Metals } & \text { Portfolio } \\\hline 2017 & - 18.00 \% & 26.00 \% & \\\hline 2019 & 32.00 \% & - 5.00 \% & \\\hline 2019 & 18.009 / & 3.00 \% & \\\hline 2020 & 1.009 & 10.009 & \\\hline\end{array} a. Compute the average annual return for each stock and a portfolio consisting of 50% First Boston and 50% Midas.
b. Compute the standard deviation for each stock and the portfolio.
c. Are the stocks positively or negatively correlated and what is the effect on risk?

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