3. Given the five years of stock prices for Dupont, U.S. Steel, and Metlife , compute:

The monthly returns on each stock

Use Index and Match function to find the month for minimum and maximum returns.

The average return on each stock over the 5-year period

The variances and standard deviations of the returns

The covariances and correlations of the returns

Use Offset function to compute correlation and covariance between any two stocks

(see the xle template and data)

THREE STOCKS: DU PONT, U.S. STEEL, METLIFE Month Returns Dupont U.S. Steel Metlife Dupont U.S. Steel Metlife Dupont U.S. Steel Metlife MET MET Use Offset Function to compute Corr&Cow Covariances Stock A StockB Exercise 4: Portfolio 0.3333 =1/3 MET Expected return Portfolio variance 0.00% .0000 A more efficient (and difficult) way to compute the above: TITRANSPOSE(K20:K22) K4:M4) LUE!