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2. This question is about MS Excel applications. You should submit the answer of this question by the Excel worksheet provided. In the Excel worksheet,
2. This question is about MS Excel applications. You should submit the answer of this question by the Excel worksheet provided. In the Excel worksheet, if possible, you should input formulae in the cells for your answer. An investor would like to create a portfolio C with a mixture of investment Y and Z. Let y be the portion he invested in Investment Y. (a) (2 points) Fill in the expected return and volatility of Y and Z correspondingly. (b) (2 points) Fill in the correlation coefficient and form the covariance matrix. Notice that your cells C15 and D14 should use the value in other cells. (e) (1 point) Given y = 0.4, fill in the weight of Y and Z in C accordingly. (d) (2 points) Form the weighted covariance matrix by using the value in part c and part b. (e) (1 point) By using only "SUM() function, find the variance of the portfolio C. 2. This question is about MS Excel applications. You should submit the answer of this question by the Excel worksheet provided. In the Excel worksheet, if possible, you should input formulae in the cells for your answer. An investor would like to create a portfolio C with a mixture of investment Y and Z. Let y be the portion he invested in Investment Y. (a) (2 points) Fill in the expected return and volatility of Y and Z correspondingly. (b) (2 points) Fill in the correlation coefficient and form the covariance matrix. Notice that your cells C15 and D14 should use the value in other cells. (e) (1 point) Given y = 0.4, fill in the weight of Y and Z in C accordingly. (d) (2 points) Form the weighted covariance matrix by using the value in part c and part b. (e) (1 point) By using only "SUM() function, find the variance of the portfolio C
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