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By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B,
By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? The total amount you invested in the portfolio is $95,400, where $31,000 of this amount of money is invested in stock A and $21,300 is invested in stock B, the rest were invested in stock C.
State of Economy | Probability of state of Economy | Return if state Occurs | ||
Stock A | Stock B | Stock C | ||
Boom | 10% | 17% | 6% | 22% |
Normal | 30% | 8% | 10% | 15% |
Recession | 60% | -3% | 19% | -25% |
Notes:
- You must show all steps in finding the Standard Deviation.
- Use the function tools available in Excel.
- I need the excel File
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