Please show all your work/steps. Thank you.

Calculate the mean, variance, and standard deviation of returns for:

(a) CAT & PG individually, and

(b) an equally-weighted portfolio of the two stocks.

For the portfolio, 1st compute the monthly returns.

Then, compute the mean, variance, and standard deviation calculations with Excels Data Analysis Descriptive Statistics function, Summary Statistics (in the function dialogue box).

Compare the return and risk of the three assets.

Monthly Stock Returns
Year	Month	S&P 500	CAT	PG
2010	Jan	0.02851	0.09223	0.02822
	Feb	0.05880	0.10163	(0.00017)
	Mar	0.01476	0.09005	(0.01001)
	Apr	(0.08198)	(0.10765)	(0.01726)
	May	(0.05388)	(0.01133)	(0.01810)
	Jun	0.06878	0.16893	0.02765
	Jul	(0.04745)	(0.06577)	(0.02444)
	Aug	0.08755	0.20749	0.00505
	Sep	0.03686	0.00441	0.06815
	Oct	(0.00229)	0.07642	(0.03929)
	Nov	0.06530	0.10699	0.05330
	Dec	0.02265	0.04067	(0.01128)
2011	Jan	0.03196	0.06098	(0.00134)
	Feb	(0.00105)	0.08187	(0.02302)
	Mar	0.02850	0.04078	0.06244
	Apr	(0.01350)	(0.08331)	0.03238
	May	(0.01826)	0.00627	(0.05128)
	Jun	(0.02147)	(0.06810)	(0.02479)
	Jul	(0.05679)	(0.07893)	0.03559
	Aug	(0.07176)	(0.18854)	(0.00786)
	Sep	0.10772	0.28633	0.02112
	Oct	(0.00506)	0.03621	0.00905
	Nov	0.00853	(0.07440)	0.03314
	Dec	0.04358	0.20986	(0.04742)
2012	Jan	0.04059	0.04667	0.07256
	Feb	0.03133	(0.06733)	(0.00607)
	Mar	(0.00750)	(0.03120)	(0.04502)
	Apr	(0.06265)	(0.14734)	(0.02125)
	May	0.03955	(0.03103)	(0.01665)
	Jun	0.01260	(0.00180)	0.06276
	Jul	0.01976	0.01322	0.04109
	Aug	0.02424	0.00830	0.03241
	Sep	(0.01979)	(0.00835)	0.00640
	Oct	0.00285	0.00510	0.00852
	Nov	0.00707	0.05735	(0.02778)
	Dec	0.02171	0.04899	0.00913