JPMorgan is Company A Goldman Sachs is Company B Task 2: Calculate the expected rate of return and standard deviation of a two-stock portfolio Month JPMorgan 55.98 55.57 57.619999 57.669998 59.450001 60.240002 60.48 60.16 62.580002 95.760002 Goldman Sachs 159.820007 159.809998 167.440002 172.869995 179.110001 183.570007 189.990005 188.410004 193.830002 191.990005 Average return: Standard deviation of returns: Weights: Calculate the estimated correlation between company A and Company B. Explain Correlation between A and B Use the Excel function: =CORRELO 32 Calculate the average rate of return on the portfolio between company A and Company B. 35 Calculate the standard deviation of the portfolio between company A and 36 Company B. Task 3: Calculate the fair value of both firms' stocks a) Find the firm's growth rate b) Estimate the fair value per share using Gordon growth model c) Make Investment Decision: Compare the fair value with the market value