***PLEASE ANSWER IN EXCEL***

4. Given the historical returns and variance/covariance matrix for three stocks: Find (1) the portfolio expected return and (2) the portfolio standard deviation of an equally weighted portfolio of the three stocks. Historical data (Returns) on three stocks Stock 1 Stock 2 Stock 3 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 10.00% 12.00% 8.00% 7.00% 9.00% 7.00% 8.00% 6.00% 9.00% 11.00% 15.00% 17.00% 4.00% -8.00% 15.00% 22.00% 3.00% -14.00% 2.00% 15.00% 12.00% 13.00% 9.00% 7.00% 9.00% 11.00% 9.00% 6.00% 8.00% 10.00% Variance/Covariance Matrix Stock 1 Stock 2 Stock 3 Stock 1 0.032% Stock 2 0.124% 1.233% Stock 3 0.027% 0.200% 0.042% 5.The covariance of the returns on the two securities. A and B, is -0.0005. The standard deviation of A's returns is 4% and the standard deviation of B's returns is 6%. What is the correlation between the returns of A and B