Carpenter and sonsʹ balance sheet on january 1, 2012, had total assets of $73,000, total liabilities of $20,000, paid-in capital of $30,000, and retained earnings of $23,000. during the month of january, carpenter and sonsʹ recognized revenues of $73,000, cost of goods sold of $47,000, depreciation expense of $12,000, the payment of february and marchʹs rent totaling $2,500, and salary expense of $8,000. the retained earnings balance at january 31, 2012, will be

Monthly price data for mdltx and ekwax from yahoo finance is contained in the excel spreadsheet for this exercise. there are 37 months of price data for the period from september 2009 to september 2012. (note: these prices already incorporate dividend payments.) the 36 monthly returns for each fund are also provided. calculate average (arithmetic) monthly return and standard deviation for each fund. you can use the excel functions average, stdev to derive these stats. annualize these statistics. use the correl function in excel to derive the correlation coefficient between the two sets of returns. (annual correlation is the same as monthly correlation. hence, no need to annualize this stat.) using the annualized statistics derived in step 1, compute the expected return and standard deviation for portfolios containing from 0% to 100% mdltx (and 100% to 0% ekwax) by 10% increments. graph the resulting portfolios. based on your analysis, is there any potential benefit to diversification across these two funds? explain. of the 11 portfolios you graphed, which are efficient?