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The following? table, contains annual returns for the stocks ofABC Corp. ?(ABC ?) and XYZ Corp. ?(XYZ ?). The returns arecalculated using? end-of-year prices? (adjusted for dividends andstock? splits). Use the information for ABC Corp. ?(ABC ?) and XYZCorp. ?(XYZ ?) to create an Excel spreadsheet that calculates theaverage returns over the? 10-year period for portfolios comprisedof ABC and XYZ using the? following, respective,? weightings:(1.0,? 0.0), (0.9,? 0.1). The average annual returns over the?10-year period for ABC and XYZ are 15.33 ?% and 13.04 ?%respectively.? Also, calculate the portfolio standard deviationover the? 10-year period associated with each portfoliocomposition. The standard deviation over the? 10-year period forABC Corp. and XYZ Corp. and their correlation coefficient are 25.33?%, 23.42 ?%, and 0.84285 respectively. ?(Hint?: Review Table?5.2.) Enter the average return and standard deviation for aportfolio with? 100% ABC Corp. and? 0% XYZ Corp. in the tablebelow.Year ABC Returns XYZ Returns2005 -3.5% 17.3%2006 1.9% -8.1%2007 -31.6% -26.7%2008 -10.3% -3.2%2009 30.2% 9.9%2010 26.5% 10.1%2011 22.8% 4.8%2012 52.4% 43.8%2013 35.6% 42.3%2014 29.3% 40.2%Enter the average return and standard deviation for a portfoliowith? 100% ABC Corp. and? 0% XYZ Corp. in the table below.???(Roundto two decimal? places.)Enter the average return and standard deviation for a portfoliowith? 90% ABC Corp. and? 10% XYZ Corp. in the table below.???(Roundto two decimal? places.)
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