5 1 Portfolio Expected Return - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In ng Calibri A A Paste BIU- % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font A1 A B F H J 2 You own a portfolio that is 35 percent invested in Stock X, 20 percent in Stock Y, and 45 percent in Stock Z. The expected returns on these three stocks are 9 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio? 3 4 5 6 7 Weight of Weight of Y Weight of Z Stock X E(R) Stock Y E(R) Stock ZE(R) 35.00% 20.00% 45.00% 9.00% 17.00% 13.00% 8 9 10 12 13 14 Complete the following analysis. Do not hard code values in your calculations. 15 16 17 Portfolio E(R) 18 19 20 Sheet1 100% READY Attempt(s) Arial -12 A Paste B * IU- E > Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font E13 E H I D F G Complete the following analysis. Do not hard code values in your calculations. 4 5 6 7 Product Return Deviation Squared Deviation Product 8 Stock A Probability Recession 0.20 Normal 0.55 Boom 0.25 9 Return 0.05 0.08 0.13 E(R) = 10 11 Variance = 12 13 14 Standard Deviation = 15 16 Product Return Deviation Squared Deviation Product 17 Stock B Probability Recession 0.20 Normal 0.55 18 Return (0.17) 0.12 0.29 E(R) = Boom 0.25 19 20 Variance = 21 22 Standard Deviation = 23 24 Sheet1 LO + 100% READY Attempt(s) 3/3 ? - 5 Calculating Portfolio Betas - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In Calibri 11 A A M Paste BIU. % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font A1 A B DE F G H I You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 30 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are .84, 1.17, 1.11, and 1.36, respectively. What is the portfolio beta? 3 4 6 7 8 Weight of Q Weight of R Weight of s Weight of T Beta of Q Beta of R Beta of s Beta of T 35.00% 25.00% 30.00% 10.00% 0.84 1.17 1.11 1.36 9 10 11 12 13 14 15 Complete the following analysis. Do not hard code values in your calculations. 16 17 18 Portfolio beta 19 20 21 Sheet1 LI 100% READY Attempt(s)