help 24

The following are monthly percentage price changes for four market indexes: Compute the following. a. Average monthly rate of return for each index. Round your answers to five decimal places. DJIA: Sep500 Russell 2000: Nikkel: b. Standard deviation for each index, Do not round intermediate calculations. Round your answers to four decimal places. DJIA: ses500 Russell 2000: Nikkei: c. Covariance between the rates of return for the following indexes. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to six decimal places. Covariance (DJIA, S8P 500): Covariance (S8P 500, Russell 2000): Covariance (S8p 500, Nikkei): Covariance (Russell 2000 , Nikkei): d. The correlation coefficients for the same four combinations. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to four decimal places. Correlation (DJtA, Sap 500): Correlation (S80 500, Russell 2000): Correlation (SbP 500, Nikkei): Correlation (Russell 2000, Nikkei): e. Using the unrounded answers from parts (a), (b), and (d), calculate the expected return and standard deviation of a portfolio consisting of equal parts of (1) the SRP and the Russell 2000 and (2) the 58 ? and the Nikkel. Do not round intermediate calculations. Round your answers to five decimal places. Expected return (SsP 500 and Russell 2000) Standard deviation (S8P 500 and Russell 2000): Expected retum (S8P 500 and Nikkei): Standard deviation (Ss. 500 and Nikkel): Since S8P 500 and Russell 2000 have a strong correlation, meaningful reduction in risk Since S\&P 500 and Nikkel have a strong correlation, meaningful reduction in risk if they are combined