The following table,, contains annual returns for the stocks ofABC 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), (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), and (0.0, 1.0). The average annual returns over the 10-year period for ABC and XYZ are 17.67% and 12.50% 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 24.50%, 20.77%, and 0.83521 respectively (Hint: Review Table 5.2.)

Data table (Click on the icon here e in order to copy its contents of the data table below into a spreadsheet.) Year ABC Returns XYZ Returns 2005 -3.3% 17.5% 2006 1.2% -8.6% 2007 - 32.4% - 27.2% 2008 - 12.9% - 4.2% 2009 31.9% 9.2% 2010 24.8% 9.4% 2011 23.4% 5.7% 2012 52.3% 41.1% 2013 36.9% 40.1% 2014 30.4% 41.4% 2015 28.6% 11.8% 2016 4.1% -0.4% 2017 44.7% 26.7% Print Done 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.) Portfolio Weights Portfolio Average Return Portfolio Standard Deviation WABC WXYZ "ABC = 17.67% XYZ = 12.50% 1.0 0.0 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.) Portfolio Standard Deviation Portfolio Weights WABC WXYZ Portfolio Average Return ABC = 17.67% XYZ = 12.50% % 0.9 0.1 Enter the average return and standard deviation for a portfolio with 80% ABC Corp. and 20% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Weights Portfolio Average Return Portfolio Standard Deviation WABC WXYZ XYZ = 12.50% 'ABC = 17.67% 0.8 0.2 Enter the average return and standard deviation for a portfolio with 70% ABC Corp. and 30% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Weights Portfolio Average Return Portfolio Standard Deviation WABC WXYZ ABC = 17.67% XYZ = 12.50% 0.7 0.3 Enter the average return and standard deviation for a portfolio with 60% ABC Corp. and 40% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Standard Deviation Portfolio Weights WABC WXYZ Portfolio Average Return "ABC = 17.67% Xyz = 12.50% 0.6 0.4 Enter the average return and standard deviation for a portfolio with 50% ABC Corp. and 50% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Weights Portfolio Standard Deviation WABC WXYZ Portfolio Average Return 'ABC = 17.67% XYZ = 12.50% 0.5 0.5 % Enter the average return and standard deviation for a portfolio with 40% ABC Corp. and 60% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Standard Deviation Portfolio Weights WABC WXYZ Portfolio Average Return "ABC = 17.67% XYZ = 12.50% 0.4 0.6 Enter the average return and standard deviation for a portfolio with 30% ABC Corp. and 70% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Weights Portfolio Average Return Portfolio Standard Deviation WABC WXYZ ABC = 17.67% XYZ = 12.50% 0.3 0.7 Enter the average return and standard deviation for a portfolio with 20% ABC Corp. and 80% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Standard Deviation Portfolio Weights WABC WXYZ Portfolio Average Return 'ABC = 17.67% XYZ = 12.50% 0.2 0.8 Enter the average return and standard deviation for a portfolio with 10% ABC Corp. and 90% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Weights Portfolio Average Return Portfolio Standard Deviation WABC WXYZ "ABC = 17.67% XYZ = 12.50% 0.1 0.9 % % Enter the average return and standard deviation for a portfolio with 0% ABC Corp. and 100% XYZ Corp. in the table below. (Round to two decimal places.) Portfolio Weights Portfolio Average Return Portfolio Standard Deviation WABC WXYZ ABC = 17.67% % % 0.0 1.0 = XYZ = 12.50%