Carnivorous Funds $($CF$)$ is a mutual fund company located in Charlotte, NC$.$ They have contracted with TF Inc. an investment advisory firm to construct a new mutual fund. The new fund will be marketed under the name, Total Energy. The fund will invest in WGL Holdings$($WGL$)$ and Idaho Power $($IDA$).$ CF believes that investors will be attracted to a fund that invests in sustainable energy as WGL is a major supplier of natural gas and IDA produces approximately $50\%$ of its power from hydroelectric plants. It is the fall of $2018$ and you are an intern at TF$.$ Before they launch the fund, CF has requested that TF perform some portfolio analysis. You are directed to calculate the following statistics for each firm as well as a market proxy. TF generally uses the S&P $500$ as a market proxy $($ticker symbol SPY$).$ Your intern will provide monthly prices for the period $06/2013-06/2018($Excel file posted on Canvas Case Data.xlsx$.$Simple StatisticsPlease calculate the following statistics based on the entire range of data provided:$1.$ Average monthly return $($both geometric and arithmetic$)2.$ Standard Deviation$3.$ Covariance between WGL$-$IDA, WGL$-$SPY$,$ and IDA$-$SPY$4.$ Beta $($for each asset$)$Portfolio StatisticsIn addition, your boss $($B$.$ E$.$ Young$)$ has requested that you generate a graph of the expected one$-$ month return $($Y$-$axis$)$ and standard deviation $($X$-$axis$)$ of the Total Energy fund under weighting schemes where the weight in WGL varies from $-50\%$ to $100\%$ in $5\%$ increments. Finally, he would also like you to identify the minimum variance portfolio.You are also aware that Carnivorous Funds target customer base consists primarily of recent retirees. Based on the computations above, write a one$-$page memo to your boss explaining which of the portfolios generated above are appropriate for a rational risk$-$averse investor and secondly which portion of the frontier might be most appropriate for CF Funds target customer base. Please attach a one page excel summary of statistics $1-4$ and the portfolio statistics graph. I have posted writing guidelines and a grading rubric on Canvas for your reference.