and have been disabled because it hasn't be activated Question No 2. (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. Click on left or right to find the shet with your name According to the information on the Excel page (Question 2), answer the following questions: 1. What is the portfolio's expected retum? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (tock A, B, C or D) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. 4. What is the expected return and variance of a portfolio invested 254 cach in A, B, Cand D? Will the resulting portfolio structure bring you a higher expected retum? 5. How should you change the shares of securities A, B, C and D in your portfolio in order to minimize risk and maximize expected retums? Explain your answers * You should describe che in detail and provide de calca. Abes from my De at det ything from the Wood * The call when we twee places Deleted 15.000 R300 ch A C D THE NEENED DATA stock 1 Rate of Stock 17 10 20 of State of Economy 22 20 23 State of 24 25 Good 26 Por 27 Bust Ord have been disabled because it hasn't been activated. Activate Question No 2. (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. [ Click on left or right to find the shelt with your name] According to the information on the Excel page (Question 2), answer the following questions: 1. What is the portfolio's expected return? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (stock A, B, C or D) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. 4. What is the expected return and variance of a portfolio invested 25% each in A, B, C and D? Will the resulting portfolio structure bring you a higher expected return? 5. How should you change the shares of securities A, B, C and D in your portfolio in order to minimize risk and maximize expected returns? Explain your answers. * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. 17 18 19 20 21 Question 2 22 Rate of Return 23 State of Economy 24 Boom 25 Good 26 Poor 27 Bust Probability of State of Economy 15% 40% 25% 20% Stock A Stock B Stock C -15% 45% -5% 12% 15% - 17% 30% -15% Stock D 36% 15% -5% -9% -20% -5% 12% 35% Stock A B C Dollar invested 25,000 15,000 35,000 25,000 D mn