In EXCEL if Possible!

The stock of Jones Trucking is expected to return 15 percent annually with a standard deviation of 9 percent. The stock of Bush Steel Mills is expected to return 15 percent annually with a standard deviation of 15 percent. The correlation between the returns from the two securities has been estimated to be +0.3. The beta of the Jones stock is 1.2, and the beta of the Bush stock is 1.5. The risk-free rate of return is expected to be 7 percent, and the expected return on the market portfolio is 13 percent. The current dividend for Jones is $4. The current dividend for Bush is $6.

1. What is the expected return from a portfolio containing the two securities if 40 percent of your wealth is invested in Jones and 60 percent is invested in Bush? Round your answer to one decimal place. %

2. What is the expected standard deviation of the portfolio of the two stocks? Round your answer to two decimal places. %

3. Which stock is the better buy in the current market? Round your answers to one decimal place. Required return (Jones): %

   Required return (Bush): %

   The -Select-JonesBushItem 5 stock is the better buy because the expected return is -Select-lowerhigherItem 6 than the required return.