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Please answer the following questions using excel You work for a large investment management firm. The analysts with your firm have made the following forecasts
Please answer the following questions using excel
You work for a large investment management firm. The analysts with your firm have made the following forecasts for the returns of stock A and stock B : a) Calculate the expected returns, variance and the standard deviations for stock A and B. b) What is the covariance of returns for Stock A and Stock B? What is the correlation coefficient for Stock A and Stock B? c) What is the expected return and standard deviation of a portfolio where 25% of the portfolio is in stock A and 75% of the portfolio is in stock B? d) Create a table (like the one shown below) that has the expected return and standard deviation for different weights in each stock. This can be done using an excel data table. Start with 100% in A and zero in B, and increments of 10%, complete the table. The last row, will have 0% in A and 100% in B. e) After you have completed your table you are to chart (or graph) your resultsStep by Step Solution
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