The following$$ table contains annual returns for the stocks of Home Depot $($HD$)$ and Lowes $($LOW$).$ The returns are calculated using$$ end$-$of$-$year prices$($djusted for dividends and stock$$ splits$).$ Use the information for Home Depot $($HD$)$ and Lowes $($LOW$)$ to create an Excel spreadsheet that calculates the average returns over the$10-$year period for portfolios comprised of HD andLOW using the$$ following, respective,$$ weightings: $(1\mathrm{.}0,0\mathrm{.}0),(0\mathrm{.}9,0\mathrm{.}1),(0\mathrm{.}8,0\mathrm{.}2),(0\mathrm{.}7,0\mathrm{.}3),(0\mathrm{.}6,0\mathrm{.}4),(0\mathrm{.}5,0\mathrm{.}5),(0\mathrm{.}4,0\mathrm{.}6),(0\mathrm{.}3,0\mathrm{.}7),(0\mathrm{.}2,0\mathrm{.}8),(0\mathrm{.}1,0\mathrm{.}9),$ and$(0\mathrm{.}0,1\mathrm{.}0).$ The average annual returns over the$10-$year period for HD and LOW are $17\mathrm{.}5\%$ and $12\mathrm{.}92\%$ respectively.$$ 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 and and their correlation coefficient are $23\mathrm{.}84\%,20\mathrm{.}86\%,$ and $0\mathrm{.}82105$ respectively. $($Hint$$: Review Table$5\mathrm{.}2.)$

Year HD Returns LOW Returns

$2005-4\mathrm{.}3\%16\mathrm{.}1\%$

$20061\mathrm{.}0\%-6\mathrm{.}1\%$

$2007-31\mathrm{.}1\%-26\mathrm{.}8\%$

$2008-11\mathrm{.}4\%-3\mathrm{.}3\%$

$200930\mathrm{.}5\%10\mathrm{.}6\%$

$201025\mathrm{.}0\%9\mathrm{.}2\%$

$201123\mathrm{.}5\%3\mathrm{.}4\%$

$201250\mathrm{.}3\%42\mathrm{.}9\%$

$201335\mathrm{.}9\%41\mathrm{.}8\%$

$201430\mathrm{.}2\%41\mathrm{.}2\%$

$201528\mathrm{.}6\%12\mathrm{.}1\%$

$20164\mathrm{.}0\%-0\mathrm{.}1\%$

$201744\mathrm{.}6\%26\mathrm{.}9\%$

Enter the average return and standard deviation for a portfolio with$100\%$ Home Depot and$0\%$ Lowes in the table below.$($Round to two decimal$$ places.$)$Portfolio Weights Portfolio Average Return Portfolio Standard Deviation

$$WHD WLOW RHD$=17\mathrm{.}45\%$ LOw$=12\mathrm{.}92\%$

$1\mathrm{.}00\mathrm{.}0......\%........\%$