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I have an excel sheet attached with the answers. I am wanting to know if these are the correct answers. If the answers I have

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I have an excel sheet attached with the answers. I am wanting to know if these are the correct answers. If the answers I have provided are correct... Can you build an excel sheet showing the formulas and calculations in the cell so I know how solve it?

Andrea Corbridge is considering forming a portfolio consisting of Kalama Corp. and Adelphia Technologies. The two corporations have a correlation of -0.1789, and their expected returns and standard deviations are as follows:

Kalama Corp.

Adelphia Technologies

Expected return (%)

14.86

23.11

Standard Deviation (%)

23.36

31.89

1. Calculate the frontier for all possible investment combinations of Kalama Corp. and Adelphia Technologies (from 0% to 100%, in 1% increments). Determine the optimal risky portfolio if the risk-free rate is 3%.

2. Andrea has $50,000 and wants to earn a 19% expected return on her investment. Describe the optimal manner in which to structure her portfolio-both in dollar amounts and in weights relative to her $50,000-based on the preceding information

3.Andrea is also seriously considering buying some stock in Medford Barnett Corporation (MBC). The stock prices of MBC and the S&P for the past 25 months are tabulated below. Andrea estimates that MBC will earn a 14% return during the next year, and she expects the market to earn a 12% return during the same time period. In addition, she expects the relationship exhibited between the S&P and MBC to remain as it has in the past. Assuming that Andrea would be pulling MBC into a fully diversified portfolio, explain if buying the MBC shares a good decision.

Month

S&P

MBC

1

1198.41

58.04

2

1228.81

65.36

3

1220.33

48.48

4

1234.18

53.32

5

1191.33

57.59

6

1191.50

49.23

7

1156.85

55.57

8

1180.59

50.99

9

1203.60

64.10

10

1181.27

50.45

11

1211.92

50.65

12

1173.82

51.23

13

1130.20

46.68

14

1114.58

51.09

15

1104.24

50.75

16

1101.72

59.80

17

1140.84

52.78

18

1120.68

49.22

19

1107.30

53.47

20

1126.21

49.26

21

1144.94

48.55

22

1131.13

61.32

23

1111.92

48.06

24

1058.20

58.88

25

1050.71

46.19

image text in transcribed click Weights 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.2 0.21 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.3 0.31 0.32 0.33 0.34 0.35 0.36 0.37 0.38 0.39 0.4 0.41 0.42 0.43 0.44 Expected Return 1 0.2311 0.99 0.230275 0.98 0.22945 0.97 0.228625 0.96 0.2278 0.95 0.226975 0.94 0.22615 0.93 0.225325 0.92 0.2245 0.91 0.223675 0.9 0.22285 0.89 0.222025 0.88 0.2212 0.87 0.220375 0.86 0.21955 0.85 0.218725 0.84 0.2179 0.83 0.217075 0.82 0.21625 0.81 0.215425 0.8 0.2146 0.79 0.213775 0.78 0.21295 0.77 0.212125 0.76 0.2113 0.75 0.210475 0.74 0.20965 0.73 0.208825 0.72 0.208 0.71 0.207175 0.7 0.20635 0.69 0.205525 0.68 0.2047 0.67 0.203875 0.66 0.20305 0.65 0.202225 0.64 0.2014 0.63 0.200575 0.62 0.19975 0.61 0.198925 0.6 0.1981 0.59 0.197275 0.58 0.19645 0.57 0.195625 0.56 0.1948 0.3189 0.318047 0.317194 0.316341 0.315488 0.314635 0.313782 0.312929 0.312076 0.311223 0.31037 0.309517 0.308664 0.307811 0.306958 0.306105 0.305252 0.304399 0.303546 0.302693 0.30184 0.300987 0.300134 0.299281 0.298428 0.297575 0.296722 0.295869 0.295016 0.294163 0.29331 0.292457 0.291604 0.290751 0.289898 0.289045 0.288192 0.287339 0.286486 0.285633 0.28478 0.283927 0.283074 0.282221 0.281368 Standard Deviation 0 0.564712 0 0.563723 -0.001 0.562736 -0.001 0.561752 -0.001 0.560771 -0.001 0.559794 -0.002 0.558819 -0.002 0.557847 -0.002 0.556879 -0.002 0.555914 -0.002 0.554951 -0.003 0.553992 -0.003 0.553036 -0.003 0.552084 -0.003 0.551134 -0.003 0.550188 -0.004 0.549245 -0.004 0.548305 -0.004 0.547368 -0.004 0.546435 -0.004 0.545505 -0.004 0.544578 -0.005 0.543654 -0.005 0.542734 -0.005 0.541818 -0.005 0.540904 -0.005 0.539994 -0.005 0.539088 -0.005 0.538184 -0.005 0.537285 -0.006 0.536388 -0.006 0.535496 -0.006 0.534606 -0.006 0.533721 -0.006 0.532838 -0.006 0.53196 -0.006 0.531085 -0.006 0.530213 -0.006 0.529345 -0.006 0.528481 -0.006 0.52762 -0.006 0.526763 -0.006 0.52591 -0.007 0.52506 -0.007 0.524214 0.45 0.46 0.47 0.48 0.49 0.5 0.51 0.52 0.53 0.54 0.55 0.56 0.57 0.58 0.59 0.6 0.61 0.62 0.63 0.64 0.65 0.66 0.67 0.68 0.69 0.7 0.71 0.72 0.73 0.74 0.75 0.76 0.77 0.78 0.79 0.8 0.81 0.82 0.83 0.84 0.85 0.86 0.87 0.88 0.89 0.9 0.91 0.92 0.55 0.54 0.53 0.52 0.51 0.5 0.49 0.48 0.47 0.46 0.45 0.44 0.43 0.42 0.41 0.4 0.39 0.38 0.37 0.36 0.35 0.34 0.33 0.32 0.31 0.3 0.29 0.28 0.27 0.26 0.25 0.24 0.23 0.22 0.21 0.2 0.19 0.18 0.17 0.16 0.15 0.14 0.13 0.12 0.11 0.1 0.09 0.08 0.193975 0.19315 0.192325 0.1915 0.190675 0.18985 0.189025 0.1882 0.187375 0.18655 0.185725 0.1849 0.184075 0.18325 0.182425 0.1816 0.180775 0.17995 0.179125 0.1783 0.177475 0.17665 0.175825 0.175 0.174175 0.17335 0.172525 0.1717 0.170875 0.17005 0.169225 0.1684 0.167575 0.16675 0.165925 0.1651 0.164275 0.16345 0.162625 0.1618 0.160975 0.16015 0.159325 0.1585 0.157675 0.15685 0.156025 0.1552 0.280515 0.279662 0.278809 0.277956 0.277103 0.27625 0.275397 0.274544 0.273691 0.272838 0.271985 0.271132 0.270279 0.269426 0.268573 0.26772 0.266867 0.266014 0.265161 0.264308 0.263455 0.262602 0.261749 0.260896 0.260043 0.25919 0.258337 0.257484 0.256631 0.255778 0.254925 0.254072 0.253219 0.252366 0.251513 0.25066 0.249807 0.248954 0.248101 0.247248 0.246395 0.245542 0.244689 0.243836 0.242983 0.24213 0.241277 0.240424 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.007 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.006 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.004 -0.004 -0.004 -0.004 -0.004 -0.004 -0.003 -0.003 -0.003 -0.003 -0.003 -0.002 -0.002 -0.002 0.523372 0.522533 0.521699 0.520868 0.52004 0.519217 0.518398 0.517582 0.51677 0.515962 0.515158 0.514358 0.513562 0.51277 0.511982 0.511198 0.510417 0.509641 0.508869 0.508101 0.507337 0.506578 0.505822 0.50507 0.504323 0.50358 0.502841 0.502106 0.501376 0.500649 0.499927 0.49921 0.498496 0.497787 0.497083 0.496382 0.495686 0.494995 0.494308 0.493625 0.492947 0.492273 0.491604 0.490939 0.490279 0.489623 0.488972 0.488326 0.93 0.94 0.95 0.96 0.97 0.98 0.99 1 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Optimal Risky Portfolio-0.4/0.6 0.154375 0.15355 0.152725 0.1519 0.151075 0.15025 0.149425 0.1486 0.239571 0.238718 0.237865 0.237012 0.236159 0.235306 0.234453 0.2336 -0.002 -0.002 -0.001 -0.001 -0.001 -0.001 0 0 0.487684 0.487047 0.486414 0.485786 0.485163 0.484545 0.483931 0.483322 If 50000 have to be invested to earn 19% the Portfolio should be as follows Kalama Corp Adelphia Technologies $ 20,000.00 $ 30,000.00

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