Part 1) Year 13=33333333 Sunglasses Returns 0.05 0.1 0.15 0.2 0.25 01 0.35 0.4 0.45 0.5 Umbrellas Returns 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Expected Return Variance Standard Deviation 0.275 0.0229166667 0.151382518 0.55 0.0916666667 0.102765035 Covariance Correlation Weight Sunglasses Weight Umbrella -0,0458333333 -1 0.5 0.5 0.9 0.4 1 0 0.8 0.2 6.7 0.3 0.6 0.4 0.5 0.5 0.3 0.7 0.2 0.8 0.1-9.992016-1 0.9 ! Expected Portfolio Return Portfolio Variance Portfolio Standard Deviation 0.4125 0.00572916667 0,0756912589 0.275 0.3023 0.33 0.3575 0.385 0.4125 0.44 0.4675 0.495 0.5225 0.55 0.0229166667 0.0112291667 0.0036667 0.0002292 0.0009167 0,0057292 0.0146667 0.0277292 0.0449167 0.0662292 0.0916667 0.151382518 0.105967762 0.060553 0.0151383 0.0302765 0.0756913 0.121106 0.1665208 0.2119355 0.2573503 0.302765 Assignment: You are provided with multiple year retum information for four scenarios in parts a) through d). Please calculate the expected returns, variances, standard deviations, covariances, and correlations for each part. The answers are provide for your guidance but you must replace the raw numbers with the appropriate equations or Excel functions. Please note that when you assign weights for a two-security portfolio, one weight will be "x" and the other will be "I-X". Graph the results for each each part placing the standard deviations on the horizontal axis and returns on verticle axis. Part 1) Year 13=33333333 Sunglasses Returns 0.05 0.1 0.15 0.2 0.25 01 0.35 0.4 0.45 0.5 Umbrellas Returns 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Expected Return Variance Standard Deviation 0.275 0.0229166667 0.151382518 0.55 0.0916666667 0.102765035 Covariance Correlation Weight Sunglasses Weight Umbrella -0,0458333333 -1 0.5 0.5 0.9 0.4 1 0 0.8 0.2 6.7 0.3 0.6 0.4 0.5 0.5 0.3 0.7 0.2 0.8 0.1-9.992016-1 0.9 ! Expected Portfolio Return Portfolio Variance Portfolio Standard Deviation 0.4125 0.00572916667 0,0756912589 0.275 0.3023 0.33 0.3575 0.385 0.4125 0.44 0.4675 0.495 0.5225 0.55 0.0229166667 0.0112291667 0.0036667 0.0002292 0.0009167 0,0057292 0.0146667 0.0277292 0.0449167 0.0662292 0.0916667 0.151382518 0.105967762 0.060553 0.0151383 0.0302765 0.0756913 0.121106 0.1665208 0.2119355 0.2573503 0.302765 Assignment: You are provided with multiple year retum information for four scenarios in parts a) through d). Please calculate the expected returns, variances, standard deviations, covariances, and correlations for each part. The answers are provide for your guidance but you must replace the raw numbers with the appropriate equations or Excel functions. Please note that when you assign weights for a two-security portfolio, one weight will be "x" and the other will be "I-X". Graph the results for each each part placing the standard deviations on the horizontal axis and returns on verticle axis
