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could you please use excel Question 5 10 pts Jessica is considering investing in a portfolio of three stocks. Suppose Jessica invest $25,000 in Stock
could you please use excel
Question 5 10 pts Jessica is considering investing in a portfolio of three stocks. Suppose Jessica invest $25,000 in Stock A, $25,000 in stock B, and $50,000 in stock C. Stock A has a beta of 0.8 and a standard deviation of 10%. Stock B has a beta of 1 and a standard deviation of 15%. Stock C has a beta of 1.4 and a standard deviation of 12%. Assume the risk-free rate is 2% and the expected return of the market is 8%. a. Calculate the expected return of each individual stock. Briefly show your calculations. Round to two decimal places. b. Calculate the expected return of Jessica's portfolio using the expected returns of the individual stocks. Briefly show your calculations. Round to two decimal places. c. Calculate the expected return of Jessica's portfolio using the beta of the portfolio. Briefly show your calculations. Round to two decimal placesStep by Step Solution
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