Question: 16 Please use the data below to answer the following questions. Standard Return Deviation S&P 500 Index 0.0800 0.0340 NCREIF 0.0160 0.0200 Correlation -0.3000 a.

16 Please use the data below to answer the following questions.

16 Please use the data below to answer the following questions. Standard Return Deviation S&P 500 Index 0.0800 0.0340 NCREIF 0.0160 0.0200 Correlation -0.3000 a. What is the covariance between S&P 500 and NCREIF returns? b. What is the expected return of a portfolio equally (50% in S&P 500 and 50% in NCREIF) invested in S&P 500 and NCREIF? C. What is the standard deviation (risk) of the portfolio in previous question? d. What are practical issues associated with forming a portfolio as described in part b? Explain

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