Risk Management" Standard deviation and Beta . Problem: 1 Calculate Standard Deviation for S&P 500 and the four funds listed : 40 points Problem: 2 Calculate Beta for the four funds 40 points PROVIDE EXCEL FILE Percent (%) changes in values in years 2003 through 2012 Fund-1 Fund-2 Fund-3 Fund-4 year S&P index small cap stock fund Large cap Bond fund Large cap stock fund Hybrid Fund : Includes Both stocks and bonds 1 2003 28.39 46.44 3.72 30.26 10.77 2 2004 8.75 15.82 1.6 13.7 6.01 3 2005 3.06 3.15 -3.39 6.37 3.23 4 2006 13.64 16.82 -0.96 14.1 7.93 5 2007 3.33 -1.73 -0.08 -0.74 6.7 6 2008 -37.89 -34.08 -5.57 -34.79 -10.53 7 2009 22.52 23.46 3.43 15.29 12.08 8 2010 12.93 25.3 4.11 13.82 9.22 9 2011 -0.09 -5.5 4.9 3.23 3.77 10 2012 12.5 18.04 5.96 19.12 6.54 Problem 1 Standard Dev ? ? ? ? ? Problem 2 BETA Base line ? ? ? ? Problem 3: For each scenario explain, based on the data above and risk parameters assessment (STD deviation and beta) which funds would you recommend and explain why? 40 points Jack would like to make on average 8 %