Normal No Spacing Heading 1 Heading 10. This exercise is to build a two-stock portfolio that consists of Exxon Mobile and Panera Bread, using historical returns. Return distributions are as follows: Year R(XOM) R(PNRA) 1 0.126 0.148 2 0.102 1.938 3 0.076 1.2802 4-0.089 0.338 5 0.206 0.135 6 0.281 0.02 7 0.118 0.629 8 0.391 0.149 9 0.243 0.359 10-0.131 0.458 Let me make your job easier. Average returns, standard deviations, and correlation for two stocks are as follows: Average return (XOM) 0.117 Average return (PNRA) 0.444 Correlation - -0.49 (Yes it is negative. Can you tell from looking at return distribution?) SD(XOM)- 0.172 SD(PNRA)-0.694 Now, let's simulate portfolio returns and risk using data you find above. For example, as you invest 100% ofcapital on XOM and nothing on PNRA, find portfolio return and portfolio risk. As you invest 80% of capital on XOM and 20% on PNRA, find portfolio return and portfolio risk. Do this again with 50%-50% allocation, 20%-80%, and 096-100% allocations. Now, you have five observations. Use Excel for your convenience. It will require a minimum level of Excel skill Lastly, plot your data below. Return Risk