I need some help. Can you please do an Excel and show the formulas of how you do it

part B is either higher / lower and is/ is not

Correlation between 2&3 : d. In theory, what should be the value of the correlation coeffici In theory the correlations should be: because a. Compute the averago monthly return and monthly standard return deviation for each portfolio and all three risk factors. Also state these valu on an annualized basis. (Hint: Monthly returns can be annualized by multiplying them by 12 , while monthly standard deviations can be annualized by multiplying them by the square root of 12.) Use a minus sign to enter negative values, if any, Do not round intermediate calculations. Round your answers to three decimal places. Consider the data contained in the table below, which lists 30 monthly excess returns to two different actively managed stock portfolios (A and B) and three different common tisk foctors (1,2, and 3). (Note: You may find it useful to use a computer spreadsheet program such as Microsoft Excel to calculate your answers;) common risk factors? Explain why. b. Based on the return and standard deviation calculations for the two portfolios from Part a, is it clear whether one portfollo outperformed the other over this time period? Do not make any additional calculations to answer this question. Portfolio A carned a return and a standard deviation than Portfolio B. Therefore, it clear that one portfolio outberformed the other over this time period. negative values, if any. Do not round intermediate calculations. Round your answers to four decimal places. Correlation between 1 \& 2 : Correlation between 1&3 : Correlation between 2 \& 3 : d. In theory, what should be the value of the correlation coefficient between the common risk factors? Explain why. In theory the correlations should be because we want the factors to be