Safety products currently outsources an electrical switch that is a component in its sprinkler systems. the switches are purchased for $23 each. the company is considering making the switches internally and has conducted a study to determine the costs involved. the costs below are projected annual production costs: unit-level material cost $ 4 unit-level labor cost $ 3 unit-level overhead $ 2 batch-level cost (9,000 units per batch) $ 26,000 product-level supervisory salaries $ 48,000 allocated facility-level costs $ 41,000 assume that the company needs 18,000 of the switches, which would be produced in two batches. assume also that the company will still be operating within the relevant range. if safety decides to make the parts under these conditions, the total relevant costs 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?