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Calculate the arithmetic mean, the geometric mean, sample standard deviation, and correlation coefficient of the Bonds...

Calculate the arithmetic mean, the geometric mean, sample standard deviation, and correlation coefficient of the Bonds and Small Cap Stocks.

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To really test your skills, calculate the expected return and risk of a 30% Bond & 70% Small Cap Stock portfolio. Estimate the weights of each asset class where you think the Minimum Variance portfolio (MPV) be located on the risk & return graph.

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2013 2014 2015 2016 2017 2.00% 5.97% 0.55% 2.65% 3.54% 38.82% 4.89% -4.41% 21.31% 14.56% 0 15.03% 14.11% 16.48% AM 0 2.14% 2.11% 3.02% -0.52 10 SD Correlatio 12 13 MPV 89.45% 10.55% 16 |2013 -C3+1 -C4+1 -C5+1 -C6+1 -0.02 0.0597 0.0055 0.0265 0.0354 0.3882 0.0489 0.0441 0.2131 0.1456 4 7 AM GM SD Correlation AVERAGE(D3:D7) AVERAGE(E3:E7) 10 -STDEV.S(D3:D7) -CORREL(D3:D7,E3:E7) STDEV.S(E3:E7) 12 13 14 15 16 MPV -(E11 E11-D12 D11 E11)/(D11 D11+E11 E11-2 D12*D11 E11) 1-D14

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