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Need Excel formulas for these answers, I've been stuck for a while. pls pls!!!! 2. Portfolio of assets with expected returns. There are four potential
Need Excel formulas for these answers, I've been stuck for a while. pls pls!!!!
2. Portfolio of assets with expected returns. There are four potential states of the economy for the coming year, and there are five potential assets for investing. First, find the expected return and the expected standard deviation of each of the five assets. Next, construct a set of portfolios with the weights listed in the second table for the assets in each portfolio. Find each portfolio's expected return and standard deviation. Determine the reduction in the standard deviation of the portfolio by comparing the weighted average standard deviation of the assets in the portfolio to the standard deviation of the portfolio. State of Probability Return Return Return Return Return the of on on on on on Economy Economic Asset Asset Asset Asset Asset State A B D E Boom 0.25 0.30 0.24 0.15 0.05 -0.20 Normal 0.45 0.15 0.12 0.12 0.09 0.02 Recession 0.20 0.05 0.00 0.06 0.14 0.10 Bust 0.10 -0.35 -0.20 0.02 0.20 0.30 Weights in the various Portfolios Portfolio Percentage Percentage Percentage Percentage Percentage in A in B in C in D in E 1 0.20 0.20 0.20 0.20 0.20 2 0.35 0.30 0.20 0.10 0.05 3 0.20 0.30 0.30 0.10 0.10 4 0.10 0.15 0.25 0.35 0.15 odc Expected Return of portfolio in Portfolio Portfolio Porfolio Portfolio 9 return each state one two three four Portfolio 10 one 8.54% Boom 10.800% 20.200% 16.200% 9.100% Portfolio 11 two 10.10% Normal 10.000% 12.250% 11.300% 9.750% Porfolio 12 three 9.44% Recession 7.000% 4.850% 5.200% 8.400% Portfolio 13 four 8.89% Bust -0.600% -14.350% -7.400% 5.500% Portfolios Portfolio one Portfolio two Standard Weighted standard deviation Average deviation Difference Portfolio 0.0011 3.326% one 8.704% 5.378% Portfolio 0.0093 9.637% two 11.521% 1.884% Porfolio 0.0045 6.703% three 9.495% 2.792% Portfolio 0.0002 1.241% four 6.948% 5.707% Porfolio three Portfolio four 2. Portfolio of assets with expected returns. There are four potential states of the economy for the coming year, and there are five potential assets for investing. First, find the expected return and the expected standard deviation of each of the five assets. Next, construct a set of portfolios with the weights listed in the second table for the assets in each portfolio. Find each portfolio's expected return and standard deviation. Determine the reduction in the standard deviation of the portfolio by comparing the weighted average standard deviation of the assets in the portfolio to the standard deviation of the portfolio. State of Probability Return Return Return Return Return the of on on on on on Economy Economic Asset Asset Asset Asset Asset State A B D E Boom 0.25 0.30 0.24 0.15 0.05 -0.20 Normal 0.45 0.15 0.12 0.12 0.09 0.02 Recession 0.20 0.05 0.00 0.06 0.14 0.10 Bust 0.10 -0.35 -0.20 0.02 0.20 0.30 Weights in the various Portfolios Portfolio Percentage Percentage Percentage Percentage Percentage in A in B in C in D in E 1 0.20 0.20 0.20 0.20 0.20 2 0.35 0.30 0.20 0.10 0.05 3 0.20 0.30 0.30 0.10 0.10 4 0.10 0.15 0.25 0.35 0.15 odc Expected Return of portfolio in Portfolio Portfolio Porfolio Portfolio 9 return each state one two three four Portfolio 10 one 8.54% Boom 10.800% 20.200% 16.200% 9.100% Portfolio 11 two 10.10% Normal 10.000% 12.250% 11.300% 9.750% Porfolio 12 three 9.44% Recession 7.000% 4.850% 5.200% 8.400% Portfolio 13 four 8.89% Bust -0.600% -14.350% -7.400% 5.500% Portfolios Portfolio one Portfolio two Standard Weighted standard deviation Average deviation Difference Portfolio 0.0011 3.326% one 8.704% 5.378% Portfolio 0.0093 9.637% two 11.521% 1.884% Porfolio 0.0045 6.703% three 9.495% 2.792% Portfolio 0.0002 1.241% four 6.948% 5.707% Porfolio three Portfolio fourStep by Step Solution
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