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Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the...

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 22%,-36%, -48%; MC: 14%, -20%, -22%. Calculate the sample covariance between the returns of FC and MC.(For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". If you use the =COVAR function in Excel you must multiply the result by {3/2} to adjust for the degrees of freedom.  If you use the =COVARIANCE.S function in Excel, then you won't need to multiply the result by 3/2 as that function automatically adjusts for the degrees of freedom.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 42%,-4%,18%; MC: -30%, 40%, -21%. What is the standard deviation of the portfolio with 50% of the funds invested in FC and 50% in MC? (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =VAR and =STDEV functions in Excel.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 14%,-3%,3%; MC: -31%,-26%,-7%. What is the sample variance of the portfolio with 50% of the funds invested in FC and 50% in MC. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =VAR function in Excel.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -26%,-28%,-12%; MC: -17%,38%,-49%. Calculate the correlation coefficient between the return of FC and MC. Enter your answer out to the fourth decimal, e.g. )".0901". (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =CORREL function in Excel.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 40%,-13%,-36% and MC:22%,39%,-28%. If FC and MC are combined in a portfolio with 50% of the funds invested in each, calculate the expected return on the portfolio. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You may want to employ the =AVERAGE function in Excel.)

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