Date. Closing Monthly HPR Closing Monthly HPR

Price for. For MDLTX. Price for. For EKWAX

MDLTX. EKWAX

Sep-09. 53.23. 58.43

Oct-09. 55.75. 0.09415. 55.93. -0.04279

Nov-09. 61.54. 0.103857. 66.53. 0.18923

Dec-09. 62.84. 0.021124. 62.45. -0.06133

Jan-10. 56.23. -0.10519. 55.68. -0.10841

Feb-10. 58.95. 0.048373. 59.95. 0.076688

Mar-10. 62.81. 0.065479. 61.52. 0.026188

Apr-10. 62.72. -0.00143. 69.04. 0. 122237

May- 10. 56.09. -0.10571. 67.34. -0.02462

Jun-10. 55.82. -0.00481. 69.53. 0.032522

Jul-10. 63.36. 0.135077. 67.39. -0.03078

Aug-10. 62.12. -0.01957. 74.55. 0.106247

Sep-10. 69.46. 0.118158. 79.9. 0.071764

Oct-10. 72.56. 0.04463. 81.16. 0.01577

Nov-10. 71.06. -0.02067. 82.69. 0.018852

Dec-10. 74.57. 0.049395. 86.04. 0.040513

Jan-11. 70.08. -0.06021. 76.27. -0.11355

Feb-11. 70.54 0.006564. 83.37. 0.09309

Mar-11. 72.91. 0.033598. 83.65. 0.003359

Apr-11. 73.93. 0.01399. 87.74. 0.048894

May-11. 71.67. -0.03057. 82.74. -0.05699

Jun-11. 71.23. -0.00614. 79.05. -0.0446

Jul-11. 68.15. -0.04324. 83.44. 0.055534

Aug-11. 64.29. -0.05664. 90.39. 0.083293

Sep-11. 52.45. -0. 18417. 77.52. -0.14238

Oct-11. 61.32. 0.169113. 82.89. 0.069272

Nov-11. 58.1. -0.05251. 83.78. 0.010737

Dec-11. 56.7. -0.0241. 72.21. -0.1381

Jan-12. 63.2. 0.114638. 80.03. 0.108295

Feb-12 66.85. 0.057753. 78.73. -0.01624

Mar-12. 64.4. -0.03665. 70.3. -0.10707

Apr-12. 61.21. -0.04953. 67.21. -0.04395

May-12. 54.09. -0.11632. 61. -0.0924

Jun-12. 55.72. 0.030135. 62.23. 0.020164

Jul-12. 56.38. 0.011845. 61.48. -0.01205

Aug-12. 56.81. 0.007627. 67.94. 0.105075

Sep-12. 59.31. 0.044006. 77.56. 0.141596

1- calculate average (arithmetic) monthly return and standard deviation for each fund. U can use excel functions Average STDEV to derive these stats.Annualize these statistics

2 use CORREL function in excel to derive the correlation coefficient between the two set of returns.

3- compute the expected return and standard deviation for portfolio containing 0% to 100% MDLTX ( and 100% to 0% EKWAX) by 10 % increments. Graph the resulting portfolio.

4- based on your analysis, is there any potential benefit to diversification across these two funds? Explain.

5-of the 11 portfolio you graphed, which are efficient?