Question: ( a ) . What is the arithmetic mean for each asset class ( stocks and real estate ) ? ( b
a What is the arithmetic mean for each asset class stocks and real estate
b What is the standard deviation of each asset class? Use the population standard deviation.
c What is the correlation between the stocks and real estate?
d What would the return be for a portfolio of percent stocks and percent real estate?
e What would the standard deviation be for a portfolio of percent stocks and percent real estate?
f Using weights for stocks and real estate ranging from percent real estate to percent stocks in increments of percent, calculate the portfolio return and standard deviation for each weight increment and plot the results on a graph with the portfolio return on the vertical axis and the standard deviation on the horizontal axis.
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