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= Homework: Assignment 5 (Chapter 5) The following table, Question 3, P5.9 (similar to) Part 1 of 20 HW Score: 18.33%, 1.83 of 10

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= Homework: Assignment 5 (Chapter 5) The following table, Question 3, P5.9 (similar to) Part 1 of 20 HW Score: 18.33%, 1.83 of 10 points Points: 0 of 1 Save contains annual returns for the stocks of Company A (A) and Company B (B). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use Excel to create a spreadsheet that calculates the retum that an equally-weighted portfolio of these two stocks would have earned in each year. Then, calculate the average return and standard deviation for each stock over this period. Next, the average return and standard deviation for a portfolio that invests 50% in A and 50% in B. What is the correlation between A and B returns over this period? The average portfolio return for 2005 is %. (Enter as a percentage and round to two decimal places.) Data table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Year 2005 2006 A Returns -4.3% 1.8% 2007 -31.4% 2008 -11.8% B Returns 15.8% -6.2% - 26.1% - 2.9% 2009 30.6% 11.8% 2010 27.3% 9.7% 2011 22.6% 4.3% 2012 52.5% 41.3% 2013 37.4% 41.7% 2014 31.4% 38.3% 2015 27.7% 13.7% 2016 5.8% -0.3% 2017 43.5% 26.6% Print Done

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