Calculate the following for each stock and record your results in the spaces provided: Use population variance and standard deviation. Using the tools menu and the data analysis find the correlation matrix and the covariance matrix for all the stocks and the S&P and put them in sheets labeled Correl and Covar.

Expected Return Standard Deviation V ariance Beta

CHY FORD GE KELL

Graph below the data the efficient frontier between FORD and KELL. this involves varying the amount of FORD and KELL in a portfolio and finding the mean and standard deviation of theses portfolios. For the variance of a combination of two stocks you would use:

var(A,B) = [(weight of A)^2]*var(A) + [(weight of B)^2]*var(B) + 2*( Correlation Coefficient)*(weight of A)*stdevp(A)*(weight of B)*stdevp(b)

The Mean of the portfolio is found by: Mean(A,B) = (weight of A)*Mean(A) + (weight of B)*Mean(B)

USE EXCEL