The following table contains annual returns for the stocks of M and N. Create a spreadsheet that calculates the average, standard deviation, and correlation coecient for the two annual return series. Next, use the averages, standard deviations, and correlation coecient along with the portfolio weights shown in the lower table to calculate a range of portfolio return and risk combinations. Finally, graph the range of return and risk combinations.

Year M Returns (%) N Returns(%) 2015 40.6 7.6 2016 -37.9 -30.0 2017 18.1 63.2 2018 4.8 20.9 2019 -18.2 50.0 2020 17.4 80.3 2021 10.4 -17.0 2022 -23.2 22.3 2023 56.2 13.6 2024 11.9 8.9

wM wN 1.0 0.0 0.9 0.1 0.8 0.2 0.7 0.3 0.6 0.4 0.5 0.5 0.4 0.6 0.3 0.7 0.2 0.8 0.1 0.9 0.0 1.0