$2.$ Please use the attached Excel worksheet to answer the following questions about Widget$$s R Us and Guns and Butter Outlets stock returns.

Note: The risk$-$free rate is a constant $\mathrm{.}2\%$

$$ What is the Annual Return for Widget$$s R Us in $2019?$

o Answer:

$$ What is the Annual Return for the Guns and Butter Outlet in $2017?$

o Answer:

$$ What is the $\backslash$sigma $2$ of Widget$$s R Us$?$

o Answer:

$$ What is the $\backslash$sigma of Guns and Butter Outlet?

o Answer:

$$ What is the Covariance of Returns?

o Answer:

$$ What is Correlation of Returns?

o Answer:

$$ What is the expected return when the portfolio is $35\%$ WRU and the remainder is GBO what is the Expected Portfolio Return?

o Answer:

$$ What is the standard deviation of the portfolio when the percentages are flipped?

o Answer:

$$ When the portfolio is evenly split between the $2$ stocks what is the market Excess return?

o Answer:

$$ When the portfolio is evenly split, what is the beta of the portfolio?

o Answer: