Question: please work in excel. QUESTION 9 Use the following information to answer the next three questions. Month Stock A Return Stock B Return 1/2013 .12

please work in excel.

QUESTION 9

  1. Use the following information to answer the next three questions.

    Month

    Stock A Return

    Stock B Return

    1/2013

    .12

    -.06

    2/2013

    .05

    -.03

    3/2013

    .02

    .25

    4/2013

    .05

    .16

    Find the covariance between stocks A and B. Round intermediate steps and your final answer to four decimals.

    a

    .0037
    b

    .005
    c

    -.005
    d

    -.0037

QUESTION 10

  1. Assume that you want to combine stocks A and B in a portfolio with the lowest possible risk. Find the weight of stock A in your portfolio. Round intermediate calculations to four decimal places.

    a

    .8006
    b

    .1994
    c

    .1746
    d

    .8254

QUESTION 11

  1. Find the standard deviation of the portfolio you created. Round intermediate steps and your final answer to four decimals.

    a

    .1131
    b

    .0128
    c

    .0211
    d

    .0004

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