A bond portfolio with $1 million invested in zero coupon Treasury bonds that mature in 10 years.

An investment of $2 million in HomeCook, a firm that delivers ready-to-cook meals.

George is intrigued by the home-delivery food industry, and is also looking at LateDate, which delivers a ready-to-bake semi-gourmet line for up-scale midnight snacks. These snack kits can also be used for school fund-raisers, and have proven to be wildly popular with helicopter parents. You have been given the last years monthly data for these companies as well as for the market.

Month	Market	HomeCook	LateDate
1	0.25	0.27	0.09
2	0.27	0.25	0.05
3	0.19	0.23	0.14
4	0.19	0.18	0.16
5	0.14	0.04	0.21
6	0.10	0.21	0.15
7	0.16	0.22	0.17
8	-0.10	-0.20	-0.27
9	-0.03	-0.15	-0.19
10	0.18	0.28	0.22
11	0.15	0.22	0.09
12	0.12	0.19	0.19

Analyze his current portfolio, showing average returns, standard deviation, coefficient of variation, correlation and beta. (Hint: use the information in the narrative to determine the portfolio weights of his HomeCook and T-bill holdings!) Calculate the betas and derive them using the graphing method.