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Answer all 3 questions. Question 1 2-asset portfolio (please include your Excel spreadsheet file)Please refer to your textbook, page 210 (NOTE: if you are using

Answer all 3 questions.

Question 1 2-asset portfolio (please include your Excel spreadsheet file)Please refer to your textbook, page 210 (NOTE: if you are using another textbook edition, datamay appear on a later page, keep looking!) Specifically, you will be using the actual annual HPRdata for Consolidated Edison (symbol: ED) and Central Valley Community Bancorp (symbol:CVCY). I.e., 2008-2017 HPR data for ED & CYCY. Answer only the following questions, do not look at any of the questions in the textbook. Using Excel spreadsheet: Determine the expected return (average) for both ED & CVCY. Determine the standard deviation of returns for both ED & CVCY. Determine the correlation coefficient between ED & CVCY. Suppose you want to construct a 2-asset portfolio using: 95% ED & 5% CVCY. Calculate this portfolios expected return and standard deviation*. Any improvement of this portfolio over using just 100% ED?*For portfolio standard deviation, you may write the equation separately, show the inputs, and use a calculator to solve. I.e., Excel is optional for standard deviation calculations.

Question 2

Based upon your answers above, are ED & CYCY effective stocks to include in a 2-asset portfolio? Briefly discuss.

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