Chapter 06: Assignment - An Introduction to Portfolio Management Problem 6-07 The following are monthly percentage price changes for four market indexes. Compute the following. a. Averaqe monthly rate of return for each index. Round your answers to five decimal places. DJIA: S\&P 500: Russell 2000: Nikkei: b. Standard deviation for each index. Do not round intermediate calculations. Round your answers to four decimal places. DJIA: S\&P 500: Russell 2000: b. Standard deviation for each index. Do not round intermediate calculations. Round your answers to four decimal places. DJIA: S\&P 500: Russell 2000: Nikkei: c. Covariance between the rates of return for the following indexes. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to six decimal places. Covariance (DJIA, S\&P 500): Covariance (S\&P 500, Russell 2000): Covariance (S\&P 500, Nikkei): Covariance (Russell 2000, Nikkei): d. The correlation coefficients for the same four combinations. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to four decimal places. Correlation (DJIA, S\&P 500): Correlation (S\&P 500, Russell 2000): Correlation (S\&P 500, Nikkei): Correlation (Russell 2000, Nikkei): e. Using the unrounded answers from parts (a), (b), and (d), calculate the expected return and standard deviation of a portfolio consisting of Correlation (DJIA, S\&P 500): Correlation (S\&P 500, Russell 2000): Correlation (S\&P 500, Nikkei): Correlation (Russell 2000, Nikkei): e. Using the unrounded answers from parts (a), (b), and (d), calculate the expected return and standard deviation of a portfolio consisting of equal parts of (1) the S\&P and the Russell 2000 and (2) the S\&P and the Nikkei. Do not round intermediate calculations. Round your answers to five decimal places. Expected return (S\&P 500 and Russell 2000): Standard deviation (S\&P 500 and Russell 2000): Expected return (S\&P 500 and Nikkei): Standard deviation (S\&P 500 and Nikkei): Since S\&P 500 and Russell 2000 have a strong correlation, meaningful reduction in risk | Since S\&P 500 and Nikkei have a strong correlation, meaningful reduction in risk