c. Calculate the standard deviation of annual returns for AMZN, BUD, and the equally weighted portfolio of AMZN and BUD.

d. Calculate the correlation coefficient for AMZN and BUD annual returns.

e. Create a table in Excel that calculates returns for portfolios comprised of AMZN and BUD using the following, respective, weightings: (1.0, 0.0), (0.9, 0.1), (0.8, 0.2), (0.7, 0.3), (0.6, 0.4), (0.5,0.5), (0.4, 0.6), (0.3, 0.7), (0.2, 0.8), (0.1, 0.9), and (0.0, 1.0). Also, calculate the portfolio standard deviation associated with each portfolio composition. You will need to use the standard deviations found previously for AMZN and BUD and their correlation coefficient.

Year	Weight (A)	Amazon.com, Inc. (AMZN)	Weight (B)	Anheuser-Busch InBev SA/NV (BUD)
2010	1	0.3527	0	0.1228
2011	0.9	0.1462	0.1	0.1203
2012	0.8	0.3655	0.2	0.4898
2013	0.7	0.3510	0.3	0.1158
2014	0.6	-0.0116	0.4	0.3113
2015	0.5	0.6557	0.5	0.0648
2016	0.4	0.5294	0.6	0.0161
2017	0.3	0.7619	0.7	0.1269
2018	0.2	0.1846	0.8	-0.3010
2019	0.1	0.1687	0.9	0.0090
2020	0	0.5961	1	-0.1595

Answer rating: 100% (QA)

To answer the given questions we first need to calculate the annual returns for AMZN and BUD using the provided data a Calculate the annual returns for AMZN and BUD using the following formula Annual ... View the full answer