((Whithout Exel))

Example 7-7 page 189 Consider the realized total returns between Coca-Cola and Duke Energy for the period 1992-2001. the summary statistics for these two stocks are as follows: Coca-Cola Duke Energy Mean 12.12 15.16 Standard deviation 21.58 25.97 Correlation coeff. 0.29 Assume we place equal amounts in each stock; therefore the weights are 0.5 and 0.5 7. 16