finance chp8

Data: Florida Company (FC) and Minnesota Company (MC) are both service companies.

Their historical return for the past six years are given below:

FC	-5%	15%	12%	4%	8%	20%
MC	8%	9%	-6%	3%	14%	20%

Answer questions 1-11 using this data. Give your answer to 2 decimals. Do not include % in your answer.

1)      Calculate the mean of returns for company FC.         ANSWER:-             

2)      Calculate the mean of returns for company MC.              ANSWER:-                     

3)      Calculate the variances of return for company FC.           ANSWER:-                    

4)      Calculate the variances of return for company MC.             ANSWER:-                  

5)      Calculate the Standard Deviation of returns for FC.             ANSWER:-                

6)      Calculate the Standard Deviation of return for MC.            ANSWER:-                   

7)      Calculate the covariance between the returns of FC and MC.   ANSWER:-             

8)      Calculate the correlation coefficient between the returns of FC and MC.   ANSWER:-             

FC and MC are combined in a portfolio with 50% of the funds invested in each. ANSWER:-             

9)       Calculate the expected return on the portfolio.                            ANSWER:-                             

10)      Calculate the portfolio variance.                                                  ANSWER:-                              

11)      Calculate the portfolio Standard deviation.                                  ANSWER:-