Below are a set of prices for Facebook (FB) and Southwest Airlines (LUV) over the last 3 months. Keep in mind that we normally would not calculate the below statistics for such a short time span, as your answers will be heavily skewed by recent market activity.
FB LUV
12/1/16 115.05 49.84
1/1/17 130.32 52.31
2/1/17 135.54 57.80
3/1/17 137.42 58.88
c) Find the annualized volatility for each stock.
d) Find the correlation between the two stocks (note that you want to use monthly, not annualized, standard deviation here).