1 2 Weights 3 Average returns of each stock 4 Standard deviation of each stock 5 6 7 8 Use AVERAGE 9 Use MMULT 10 Use SUMPRODUCT 11 12 13 Use excel function 14 15 16 Use equation 17 18 19 Minimum vairance portfolio 20 Optimal Portfolio 21 22 standard deviation of the minimum variance portflio 23 Sharpe ratio of the optimal portfolio 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 *** AAPL E(Rp) STDV(Rp) 1 AAPL WMT 10% 10% 1.25% 0.78% 7.34% SBUX FB 10% 10% 10% MSFT TSLA AMZN GOLD JNJ 10% 10% 10% 10% 10% 1.37% 2.39% 1.98% 4.16% 2.82% -0.25% 1.25% 1.35% 5.11% 5.48% 10.61% 5.85% 15.66% 8.06% 14.08% 4.08% 4.92% <- Sharpe Ratio if RF is 1% <- WMT SBUX FB Problem 2 instructions Prices Returns copy and paste returns MSFT TSLA AMZN Correlation and covariance GOLD JNJ Weights Sheet1 DIS DIS + TOTAL 100% TOTAL Ret(P)