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$,$ S&P $500)$:

Covariance $($S&P $500,$ Russell $2000)$:

Covariance $($S&P $500,$ 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 $($DJIA$,$ S&P $500)$:

Correlation $($S&P $500,$ Russell $2000)$:

Correlation $($S&P $500,$ Nikkei$)$:

Correlation $($Russell $2000,$ Nikkei$)$:

e$.$ Using the unrounded answers from parts $($a$),($b$),$ and $($d$),$ calculate the expected return and standard deviation of portfolio consisting of equal parts of $(1)$ the S&P and the Russell $2000$ and $(2)$ the S&P and the Nikkei. Do not round intermediate calculations. Round your answers to five decimal places.

Expected return $($S&P $500$ and Russell $2000)$:

Standard deviation $($S&P $500$ and Russell $2000)$:

Expected return $($S&P $500$ and Nikkei$)$:

Standard deviation $($S&P $500$ and Nikkei$)$:

Since S&P $500$ and Russell $2000$ have a strong $-$ Select$-$ correlation, meaningful reduction in risk if they are combined.

Since S&P $500$ and Nikkei have a strong correlation, meaningful reduction in risk if they are combined.