Based on the following stock return information for Johnson & Johnson and Walt Disney (see table), the correlation between the returns of the two stocks is: a. 0.9647   b. 0.0807   c. 0.0015   d. 0.0003   e. 0.0187

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Q: Covariance of the returns of:

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A: Covariance = 0.0425 Standard deviation of stock A = 0.2041 Standard deviation of stock B = 0.2944

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A: Disclaimer:-Since you have asked multiple question, we will solve the first question for you. If you…

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A: Solution:- Beta means the sensitivity of stock with respect to market.

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