As an investment advisor for MREAF (Momentum Real Estate Advisory Fund), you are about to make a presentation to the portfolio manager of the ET&T pension fund. You would like to show what would have happened had ET&T made an investment in MREAF during the past 13 quarters. The ET&T manager has provided you with historical data on the performance of its portfolio, which is made up entirely of common stock. Historical data for the ET&T portfolio and MREAF are as follows:

	ET&T Common Stock Fund		MREAF Real Estate Fund
Period Ending (Quarter)	Unit Value	Quarterly Dividend	Unit Value	Quarterly Dividend
1	$701.00	$8.28	$70.00	$2.17
2	752.50	8.11	80.05	2.14
3	850.52	10.30	90.80	2.01
4	953.75	9.81	100.50	2.01
5	1,047.57	12.05	99.14	1.87
6	1,221.70	14.17	95.50	1.81
7	1,443.90	17.18	93.77	1.79
8	1,263.31	14.91	80.31	1.54
9	1,258.56	13.84	77.34	1.49
10	1,526.72	18.32	76.53	1.44
11	1,616.81	19.73	78.42	1.51
12	1,624.08	19.98	79.01	1.53
13	1,560.25	18.88	81.75	1.55

b. Calculate the arithmetic mean HPR, the standard deviation of the HPRs, and the geometric mean for each fund.

	ET&T Common Stock Fund	MREAF Real Estate Fund
Arithmetic Mean HPRs	%	%
Standard Deviation of HPRs	%	%
Geometric Mean	%	%
Risk per unit of return

c. What is the correlation between returns on the ET&T fund and MREAF?

%