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7. You are considering building a portfolio that consists of two stocks, ABC and XYZ whose annual returns over the past five years are shown

7. You are considering building a portfolio that consists of two stocks, ABC and XYZ whose annual returns over the past five years are shown in the table below. a) Year b) 2009 c) 2010 d) 2012 e) 2013 f) 2014 ABC 40.00% -10.00% 35.00% -5.00% 15.00% XYZ 40.00% 15.00% -5.00% -10.00% 35.00% Calculate these stocks' average return and standard deviation, Calculate the correlation coefficient of ABC and XYZ returns Calculate the expected return and standard deviation of a portfolio that consists of 70% invested in XYZ and 30% in ABC

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