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You have been given the following information for 4 of the leading stock indices. Use the information to answer the following questions Compute the following

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You have been given the following information for 4 of the leading stock indices. Use the information to answer the following questions Compute the following 1. Calculate the Arithmetic Mean (Expected Return) for each index 4 points. 2 Calculate the Standard Deviation for each index (you may use math or Excel function keys), 4 points 1. Calculate the Covariance and Correlation Coefficients between the DJIA/S\&P500 and the Russell 2000/ Nikkei 8 points 4. What do the correlation coefficients tell you about the diversification benefits of each of the 2 portfolios. Be sure to discuss how the correlation coefficient works (+1 to 1)

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