haraldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.2 ounces $ 5.00 per ounce $ 26.00 Direct labor 0.9 hours $ 14.00 per hour $ 12.60 Variable overhead 0.9 hours $ 5.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,400 units Actual output 4,600 units Raw materials used in production 25,000 ounces Purchases of raw materials 20,100 ounces Actual direct labor-hours 7,200 hours Actual cost of raw materials purchases $ 42,900 Actual direct labor cost $ 14,400 Actual variable overhead cost $ 4,200 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:

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?