CE( ED) CV ( CVY) 2008 -15.70%| Year -43.40% 2009 23.80% -9.90% 2010 14.90% 1.40% 2011 30.80% -3.60% 2012 -6.70% 43.70% 2013 3.80% 47.40% 2014 24.80% 0.30% 2015 1.40% 10.80% 2016 18.90% 69.00% 2017...

Extracted text: CE( ED) CV ( CVY) 2008 -15.70%| Year -43.40% 2009 23.80% -9.90% 2010 14.90% 1.40% 2011 30.80% -3.60% 2012 -6.70% 43.70% 2013 3.80% 47.40% 2014 24.80% 0.30% 2015 1.40% 10.80% 2016 18.90% 69.00% 2017 19.30% 2.20%


Extracted text: Question 1- 2-asset portfolio (please include your Excel spreadsheet file) Please refer to your textbook, page 210 (NOTE: if you are using another textbook edition, data may appear on a later page, keep looking!) Specifically, you will be using the actual annual HPR data for Consolidated Edison (symbol: ED) and Central Valley Community Bancorp (symbol: CVCY). I.e., 2008-2017 HPR data for ED & CYCY. Answer only the following questions, do not look at any of the questions in the textbook. Using Excel spreadsheet: Determine the expected return (average) for both ED & CVCY. Determine the standard deviation of returns for both ED & CVCY. Determine the correlation coefficient between ED & CVCY. Suppose you want to construct a 2-asset portfolio using: 90% ED & 10% CVCY. Calculate this portfolio's expected return and standard deviation*. Any improvement of this portfolio over using just 100% ED? *For portfolio standard deviation, you may write the equation separately, show the inputs, and use a calculator to solve. I.e., Excel is optional for standard deviation calculations. Question 2 Based upon your answers above, are ED & CYCY effective stocks to include in a 2-asset portfolio? Briefly discuss. Question 3 Briefly discuss possible limitations to the determination of "beta value" for common stocks. (HINT: consult Chapter 5 of the textbook & class discussions!)