S&P 500	S	H
Average Monthly Return	0.47%	1.44%	1.87%
Average Annual Return	5.69%	17.24%	22.50%
Average monthly Geometric Return	100.41%	101.13%	201.28%
Average Annual Geometric Return	1204.95%	1213.52%	2415.36%
Monthly Standard Deviation	3.50%	7.97%	9.29%
Annual Standard Deviation	12.11%	27.60%	32.17%
Correlation of S &H 0.058035719

(In EXCEL)

a) Which stock (S or H) is most risky if they are held alone and not in a portfolio?

b) Now consider the following two portfolios:

X: A portfolio with a weight of 98% in S&P 500 and 2% in S

Y: A portfolio with a weight of 98% in S&P 500 and 2% in H.

How does each stock affect the variability of the investment

c) Perform a regression for each stock on the Index returns