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The following table, , contains annual returns for the stocks of ABC Corp. (ABC) and XYZ Corp. (XYZ). The returns are calculated using end-of-year prices

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The following table, , contains annual returns for the stocks of ABC Corp. (ABC) and XYZ Corp. (XYZ). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use Excel to create a spreadsheet that calculates the return that an equally-weighted portfolio of these two stocks would have earned in each year. Then, calculate the average return and standard deviation for each stock over this period. Next, the average return and standard deviation for a portfolio that invests 50% in ABC and 50% in XYZ. What is the correlation between ABC and XYZ returns over this period? The average portfolio return for 2005 is \%. (Enter as a percentage and round to two decimal places.) (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) The following table, , contains annual returns for the stocks of ABC Corp. (ABC) and XYZ Corp. (XYZ). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use Excel to create a spreadsheet that calculates the return that an equally-weighted portfolio of these two stocks would have earned in each year. Then, calculate the average return and standard deviation for each stock over this period. Next, the average return and standard deviation for a portfolio that invests 50% in ABC and 50% in XYZ. What is the correlation between ABC and XYZ returns over this period? The average portfolio return for 2005 is \%. (Enter as a percentage and round to two decimal places.) (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.)

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