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answer using excel please (all calcultions should be rounded one decimal place) You work for a small investment management firm. You have been provided with

answer using excel please (all calcultions should be rounded one decimal place) image text in transcribed
You work for a small investment management firm. You have been provided with the following historical information for three stocks and the market index. The information is shown in the table below. Stock AAA Inc. Dividend Price 2012 2013 2014 2015 2016 2017 2018 $45 $50 S55 $60 $52 $62 $80 $1.40 $1.40 $1.70 $1.85 $1.85 $1.90 BBB Inc. Stock Dividend Price $130 $140 $1.50 $118 $1.55 $135 $1.65 $160 $1.75 $170 $1.90 $140 $2.00 CCC Inc. Stock Dividend Price $200 $185 $3.50 $195 $3,60 $210 $3.65 $205 $3.65 $225 $3.75 $240 $3.90 Market Index 30,840 33,320 32,220 35,325 34,500 36,100 37,500 Using the data provided you are to calculate the following for each of the stocks and the market index. a) What is the average annual return for the past six years? b) What is the geometric average annual return (effective annual rate of return) for the past six years? c) What is the population standard deviation and the sample standard deviation? d) What is the correlation coefficient between Stocks AAA and BBB? Between Stocks AAA and CCC? Between Stocks BBB and CCC? e) What is the sample covariance between Stocks AAA and BBB, between Stocks AAA and CCC and between stocks BBB and CCC? f) What is the coefficient of variation for each of the stocks and the market index? You should use the sample standard deviation g) What is the beta of each of the stocks? You can use Excel's "slope" function to estimate this h) Assuming that the beta of stock AAA is 0.80, the beta of stock BBB is 1.2 and the beta of stock CCC is 1.6. What is the beta of a portfolio where the weight in stock AAA is 20% the weight in stock BBB is 50% and the weight in stock CCC is 30%. i) Assuming the risk free rate is 3% and the expected return on the market is 7% what is the expected return on the portfolio in part (8) above

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