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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

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). Use the information for ABC Corp. (ABC ) and XYZ Corp. (XYZ ) to create an Excel spreadsheet that calculates the average returns over the 10-year period for portfolios comprised of ABC and XYZ using the following, respective, weightings: (1.0, 0.0), (0.9, 0.1). The average annual returns over the 10-year period for ABC and XYZ are 15.33 % and 13.04 % respectively. Also, calculate the portfolio standard deviation over the 10-year period associated with each portfolio composition. The standard deviation over the 10-year period for ABC Corp. and XYZ Corp. and their correlation coefficient are 25.33 %, 23.42 %, and 0.84285 respectively. (Hint: Review Table 5.2.) Enter the average return and standard deviation for a portfolio with 100% ABC Corp. and 0% XYZ Corp. in the table below. Year ABC Returns XYZ Returns 2005 -3.5% 17.3% 2006 1.9% -8.1% 2007 -31.6% -26.7% 2008 -10.3% -3.2% 2009 30.2% 9.9% 2010 26.5% 10.1% 2011 22.8% 4.8% 2012 52.4% 43.8% 2013 35.6% 42.3% 2014 29.3% 40.2% Enter the average return and standard deviation for a portfolio with 100% ABC Corp. and 0% XYZ Corp. in the table below.(Round to two decimal places.) Enter the average return and standard deviation for a portfolio with 90% ABC Corp. and 10% XYZ Corp. in the table below.(Round to two decimal places.)

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