Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please post the formulas and solution for how solve in excel thanks. PROBLEM (2) : Below, you will find the annual returns of two assets.
Please post the formulas and solution for how solve in excel thanks.
PROBLEM (2) : Below, you will find the annual returns of two assets. Fill the blanks and graph the returns of the portfolios 31-Dec-90 31-Dec-91 31-Dec-92 31-Dec-93 31-Dec-94 31-Dec-95 31-Dec-96 31-Dec-97 31-Dec-98 31-Dec-99 12.56% 13.50% 14.23% 15.23% 14.23% 12.23% 10.23% 5.26% 4.25% 2.23% 7.56% 8.56% 4.56% 2.12% 1.23% 0.26% 3.25% 4.89% 5.56% 6.45% Step 1: use the portfolio return formula in C31:wl*rl+(1-w1) r2 in B31 use the portfolio standard deviation formula Then copy down till C41 Average return Retum variance Covariance sqrt((w142*variance 1)+((1-w1)A2*variance 2) +(2*w1*(1-w1)*covanraince) Proportion of asset 1 Portfolio standard deviation Portfolio mean return Then copy down till B41 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 PROBLEM (2) : Below, you will find the annual returns of two assets. Fill the blanks and graph the returns of the portfolios 31-Dec-90 31-Dec-91 31-Dec-92 31-Dec-93 31-Dec-94 31-Dec-95 31-Dec-96 31-Dec-97 31-Dec-98 31-Dec-99 12.56% 13.50% 14.23% 15.23% 14.23% 12.23% 10.23% 5.26% 4.25% 2.23% 7.56% 8.56% 4.56% 2.12% 1.23% 0.26% 3.25% 4.89% 5.56% 6.45% Step 1: use the portfolio return formula in C31:wl*rl+(1-w1) r2 in B31 use the portfolio standard deviation formula Then copy down till C41 Average return Retum variance Covariance sqrt((w142*variance 1)+((1-w1)A2*variance 2) +(2*w1*(1-w1)*covanraince) Proportion of asset 1 Portfolio standard deviation Portfolio mean return Then copy down till B41 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started