Question

ДА В С D E The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2010. (You do NOT need to fill out the 1 empty cells here again). Realized Returns Date Cola Co Gas Co. Portfolio of 55% Cola and 45% Gas Jan -10.84% -6.00% Feb 2.36% 1.28% Mar 6.60% -1.86% 2.01% -1.90% 18.36% 7.40% -1.22% -0.26% 2.25% 8.36% -6.89% -2.46% -6.04% -2.00% 13.61% 0.00% Nov 3.51% 4.68% 0.54% 2.22% Average return 2.02% 0.79% Volatility 8.24% 4.25% | Oct Dec Part I: calculate the correlation coefficient between Cola and Gas? Part II: use the equation on LC9 Slide #17 to calculate portfolio volatility again, and compare to your calcuation of portfolio volatility in the previous tab.

Please show work using excel with equations

Answer 1

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@ v dx E ENG 0824 16 01 2000 25 A B C DE G H I J K L M N O A RETURNS MONTH COLA (X) GAS (Y) JAN -10.84% -6% FEB 2.36% 1.28% MAR 6.60% -1.86% APR 2.01% -1.90% MAY 18.36% 7.40% JUNE -1.22% -0.26% JULY 2.25% 8.36% AUG -6.89% -2.46% SEPT -6.04% -2% OCT 13.61% 0% NOV 3.51% 4.68% DEC 0.54% 2.22% AVERAGE RETURN 2.02% 0.79% VOLATILITY 8.24% 4.25% PORTFOLIO = 55%COLA AND 45% GAS -8.6620% (=55%*D4+45%E4] 1.8740% (=55%*D5+45%*E5] 2.7930% (=55%*D6+45%E6] 0.2505% AND SO ON 13.4280% -0.7880% 4.9995% -4.8965% -4.2220% 7.4855% 4.0365% 1.2960% 1.47% (=AVERAGE(F4:F15)] 5.90% (=STDEV.S(F4:F15)] CORRELATION COEFFICIENT = VOLATILITY = 0.6084 (=CORREL(D4D15, E4:E15)] 5.90% b ... Curr REGRESSION range CAMERA TREND Trey INTERVAL NORMAL MATRIX HYPOTHESIS SOC GP MATHS LPP prob Sheel3 Sheets Sheet7 Sheel6