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a You may use Microsoft Excel for any of the calculation problems. Failure to provide formulas in your cells and a formula-showing worksheet will result
a You may use Microsoft Excel for any of the calculation problems. Failure to provide formulas in your cells and a formula-showing worksheet will result in no credit being awarded. Please make your answers are clear, organized, and legible. 1. (15 points) Using the data below for stocks and the given portfolio combinations, calculate the expected portfolio return and standard deviation for the portfolios assuming first a correlation coefficient of 0 (21,2 = 0) then a correlation coefficient of 0.85 (21,2 = 0.85). Graph the combinations of portfolio expected return (p) and the standard deviation (Op) for each P1,2 on one chart. Hint: you should have two curves on your graph with returns and standard deviation as your axes. Investment 1: T = 13.0% a = 5.0% Investment 2: 72 = 30.0% 02 = 20.0% Weight (%) of Investment 1: 100 90 80 70 60 50 40 30 20 10 0 Weight (%) of Investment 2: 0 10 20 30 40 50 60 70 80 90 100
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