Instructions: You are given the following data below. Calculate in YELLOW

  1. Calculate mean, variance, standard deviation, covariance, correlation
  2. Create a chart of the mean and standard deviation of combinations of the portfolios.
  3. Add the individual asset returns to the chart—are the two portfolios on the efficient frontier?
  Variance-covariance matrix   Means
  0.40 0.03 -0.04   10%
  0.03 0.50 0.05   15%
  -0.07 0.07 0.70   12%
  Portfolio1 Portfolio2      
Asset1 20% 10%      
Asset2 30% 50%      
Asset3 50% 40%      

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