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Please answer the following questions in an Excel spreadsheet and show the formulas needed to find the answers. I need to create a template that
Please answer the following questions in an Excel spreadsheet and show the formulas needed to find the answers.
I need to create a template that can generate answers to each question automatically and correctly whenever any values of the input list is changed.
A portfolio manager summarizes the input from the macro and micro forecasters in the following table Micro Forecasts Residual Standard Deviation (%) Expected Asset Return(%) Beta Stock A Stock B Stock C Stock D 23 20 18 9 60 72 65 53 2.5 1.7 Macro Forecasts Expected Standard Return Deviation Asset T-bills Passive equity portfolio 8 14 26 a. Calculate expected excess returns, alpha values, and residual variances for these stocks. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round "Alpha values" to 1 decimal place.) Stock A Stock B Stock C Stock D Excess returns Alpha values Residual variances
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