10 - Portfolios and Diversification Please complete on EXCEL Spread Sheet Consider the following two funds and their estimated returns under different states of the economy: State of economy Great Average Poor Probability Estimated Return (Fund A) Estimated Return (Fund B) 30% 30% 40% 10% 15% 20% 25% 11% 15% Calculate the following: a. Expected return for fund A and for fund B b. Standard deviation of returns for fund A and fund B c. Covariance between returns of fund A and fund B d. Correlation between returns of fund A and fund B If you invest $2,000 in Fund A and $8,000 in Fund B, Calculate the following: e. Portfolios' Expected Return f. Portfolio's Standard Deviation Bonus 1: Construct the complete covariance matrix for A & B Construct the complete correlation matrix for A & B Bonus 2: Find the minimum variance portfolio using solver and report standard deviation and expected return