Year	NRG Return	XOM Return
2013	42%	10%
2014	16%	5%
2015	-11%	-2%
2016	-57%	-8%
2017	15%	20%

Question 1 (5 points): Calculate the five-year holding period return for NRG and the same holding period return for XOM.

Question 2 (2 parts, 5 points total):

Part A (2 points): Without calculating the portfolio variance explicitly, will the diversification effect hold for a portfolio that consists of 30% NRG and 70% XOM? Defend your answer numerically. You do not need to quantify the diversification effect in this question, just determine whether there will be a diversification effect?

Part B (3 points): Calculate the expected portfolio value and the portfolio variance for a portfolio that consists of 30% NRG and 70% XOM.