The following are monthly percentage price changes for four market indexes.

Compute the following.

a$.$ Average monthly rate of return for each index. Round your answers to five decimal places.

DJIA:

S&P $500$:

Russell $2000$:

Nikkei:

b$.$ Standard deviation for each index. Do not round intermediate calculations. Round your answers to four decimal places.

DJIA:

S&P $500$:

Russell $2000$:

Nikkei:

Covariance $($DJIA$,$ S&P $500)$:

Covariance $($S&P $500,$ Russell $2000)$:

Covariance $($S&P $500,$ Nikkei$)$:

Covariance $($Russell $2000,$ Nikkei$)$:

Correlation $($DJIA$,$ S&P $500)$:

Correlation $($S&P $500,$ Russell $2000)$:

Correlation $($S&P $500,$ Nikkei$)$:

Correlation $($Russell $2000,$ Nikkei$)$:

calculations. Round your answers to five decimal places.

Expected return $($S&P $500$ and Russell $2000)$:

Standard deviation $($S&P $500$ and Russell $2000)$:

Expected return $($S&P $500$ and Nikkei$)$:

Standard deviation $($S&P $500$ and Nikkei$)$:

Since S&P $500$ and Russell $2000$ have a strong $-$ Select$-$ $ correlation, meaningful reduction in risk they are combined.

Since S&P $500$ and Nikkei have a strong

Jcorrelation, meaningful reduction in risk $-$ Select$-,$ if they are combined.