PRICE AND RETURN DATA FOR WALMART (WMT) AND TARGET (TGT)

Prices Returns
Date WMT TGT WMT TGT
5-Jul-01 26.07 37.4
1-Aug-01 22 33.53 -16.97% -10.92%
4-Sep-01 20.07 35.73 -9.18% 6.36%
1-Oct-01 20.02 30.15 -0.25% -16.98%
1-Nov-01 23.35 36.38 15.39% 18.78%
3-Dec-01 24.79 39.79 5.98% 8.96%
2-Jan-02 23.03 43.04 -7.36% 7.85%
4-Feb-02 18.09 40.66 -24.14% -5.69%
1-Mar-02 19.17 41.85 5.80% 2.88%
1-Apr-02 20.25 42.36 5.48% 1.21%
1-May-02 22.79 40.29 11.82% -5.01%

5-Jul-02 20.52 37.03 -10.49% -8.44%

1-Aug-02 50.93 55.37 90.91% 40.23%
4-Sep-02 52.19 53.31 2.44% -3.79%
1-Oct-02 55.31 54.76 5.81% 2.68%
1-Nov-02 55.63 54.54 0.58% -0.40%
3-Dec-02 58.46 54.29 4.96% -0.46%
2-Jan-03 60.23 51.9 2.98% -4.50%
4-Feb-03 65.46 52.99 8.33% 2.08%
1-Mar-03 60.84 48.92 -7.32% -7.99%
1-Apr-03 67.51 48.87 10.40% -0.10%
1-May-03 67.65 49.17 0.21% 0.61%
AND TARGET (TGT)

Graphing
Asset returns WMT TGT 50.00%

Monthly Mean 4.54% 1.30% 40.00%

Variance 0.0463 0.0636 30.00%
Standard deviation 21.53% 25%
20.00%
Covariance 2.00%
10.00%

Annual Mean 54.49% 15.64% -40.00% -20.00%

0.00%
0.00%
Annual Variance 0.5561 0.762601 -10.00%

Annual Standard Deviation 0.7457 0.87327 -20.00%

Portfolio return variance
Correlation 80.91%
 Graphing WMT and TGT Returns
50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
.00% -20.00% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
-10.00%

-20.00%
CALCULATING THE MEAN AND STANDARD DEVIATION OF A PORTFOLIO
Proportion of WMT 0.5
Proportion of TGT 0.5
WMT TGT Portfolio
return return return
1-Aug-01 -16.97% -10.92% -13.95%
4-Sep-01 -9.18% -8.72% -8.95%
1-Oct-01 -0.25% -1.91% -1.08%
1-Nov-01 15.39% 18.78% 17.09%
3-Dec-01 5.98% 8.96% 7.47%
2-Jan-02 -7.36% 7.85% 0.25%
4-Feb-02 -24.14% -5.69% -14.92%
1-Mar-02 5.80% 2.88% 4.34%
1-Apr-02 5.48% 1.21% 3.35%
1-May-02 11.82% -5.01% 3.41%
3-Jun-02 -10.49% -8.44% -9.47%
1-Jul-02 -21.80% -13.33% -17.57%
1-Aug-02 -1.40% 2.71% 0.66%
3-Sep-02 -8.66% -14.73% -11.70%
1-Oct-02 18.82% 2.00% 10.41%
1-Nov-02 21.95% 14.57% 18.26%
2-Dec-02 -3.08% -14.78% -8.93%
2-Jan-03 -16.56% -6.17% -11.37%
3-Feb-03 2.36% 1.77% 2.07%
3-Mar-03 -1.07% 2.12% 0.53%
IATION OF A PORTFOLIO

Asset returns WMT TGT

Mean return -1.67% -1.34%
Variance 1.61% 0.84%
Standard deviation 12.69% 9%
Covariance 0.81%
Correlation 0.695887
Portfolio mean return
-0.0151 Return of Portfolio = W
-0.0151
Portfolio variance
1.02%
1.02%

Portfolio return standard deviation 10.08%

10.08%
Return of Portfolio = W1R1 + W2R2
CALCULATING THE MEAN AND STANDARD DEVIATION OF A PORTFOL
Asset Returns WMT TGT
Mean Return -1.67% -1.34%
Variance 1.61% 0.84%
Standard Deviation 12.69% 9%
Covariance 0.81%
Proportion of WMT

Portfolio mean return -1.34%

Portfolio variance 1.02%
Portfolio Standard Deviation 10.08%
Portfolio Portfolio
Proportion of W Variance Stdev Return
-0.5 2.276% 15% 1.18%
-0.4 1.892% 14% 1.21%
-0.3 1.556% 12% 1.24%
-0.2 1.268% 11% 1.28%
-0.1 1.029% 10% 1.31%
0 0.839% 9% 1.34%
0.1 0.698% 8.35% 1.38%
0.2 0.604% 7.77% 1.41%
0.3 0.560% 7.48% 1.44%
0.4 0.564% 7.51% 1.47%
0.5 0.617% 7.85% 1.51%
0.6 0.718% 8% 1.54%
0.7 0.868% 9% 1.57%
0.8 1.066% 10% 1.60%
0.9 1.313% 11% 1.64%
1 1.609% 13% 1.67%
1.1 1.953% 14% 1.70%
1.2 2.346% 15% 1.73%
1.3 2.788% 17% 1.77%
1.4 3.278% 18% 1.80%
1.5 3.816% 20% 1.83%
EVIATION OF A PORTFOLIO by varying different proportions

Rp = W1R1 + W2R2

Return
2.50%

2.00%

1.50% Return

1.00%

0.50%

0.00%
6% 8% 10% 12% 14% 16% 18% 20% 22%