1. Find the average return and return variance of each asset and get formulas for asset 2.

2. Find the covariance of the two return series and get formula.

3. Find the correlation coefficient of the two return series and get formula.

4. Suppose we form portfolios with asset 1 and asset 2. Find the portfolio standard deviation and portfolio mean return given different weights and get formulas.

5. Make a smooth marked scatter plot of portfolio standard deviation vs portfolio mean return, with the portfolio mean return being the y-axis, portfolio standard deviation being the x-axis and title it as "Portfolio Risk vs Expected Return".

Asset 1 12.56% 13.50% 14.23% 15.23% 14.23% 12.23% 10.23% 5.26% 4.25% 222% Asset 2 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 8.56% 4.56% 2.12% 1.23% 0.26% 3.25% 4.89% 5.56% 6.45% get formula 3 Average return 4 Return variance 5 Covariance 6 Corelation Coef weight of asset 1 Portfolio Expected Return Portfolio Variance 0 5 Portfolio Standard deviation get formula get formula get formula 0. 3 0.4 0. 5 0.6 0. 7 0.8 0.9