1. From the following monthly returns from stocks A & B and the investment amounts, calculate their average returns, standard deviations, portfolio weighting, and the correlation coefficient between stocks A & B. Then calculate the portfolio return and variance from a portfolio of stocks A & B with the given investment amounts. What can say about the portfolio ?

Month 12 2 32 42 52 6 7e Stock A 0.12052 0.1527e (0.0412) 0.0157 0.0316 (0.0279) (0.0897) (0.0118) 0.01072 0.1275 0.0748 (0.0094) $1,000,000 Stock Be 0.14092 0.0296 0.0719 0.2439 0.0006 0.0652 (0.0875 0.0282 (0.1397) (0.0806 (0.00702 0.0880 $1,000,000 le 82 9 10 112 12 Investment Amount