The table below shows annual returns for Merck and one of its major competitors, Eli Lilly. The final column shows the annual return on a portfolio invested 50% in Lilly and 50% in Merck. The portfolios return is simply a weighted average of the returns of the stocks in the portfolio as shown in the example calculation at the top of the table. (EXCEL EXERCISE) Year Eli Lilly Merck 50-50 Portfolio 1 15.4% 14.9% 15.1% (0.5 x 15.4% + 0.5 x 14.9%) 2 77.2% 76.4% 3 32.6% 24.0% 4 93.6% 35.5% 5 29.1% 41.2% 6 -24.3% -7.4% 7 41.9% 41.7% 8 -14.4% -35.9% 9 -17.6% -1.1% 10 13.1% -11.2%

***Find standard deviation, variance, and returns (PLEASE EXPLAIN STEPS HOW TO CALCULATE ON EXCEL)**