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Please provide Excel formulas and how to work these problems. Please make it so I can read the formulas. State of Economy Probability Return for
Please provide Excel formulas and how to work these problems. Please make it so I can read the formulas.
State of Economy | Probability | Return for Stock A | Return for Stock B | Return for Stock C | Return for Stock D | Return for Stock E | Return for Stock F |
Growth | 0.25 | 32% | 3% | 16% | 21% | 0% | 18% |
Status Quo | 0.50 | 22% | 1% | 4% | 8% | 5% | 4% |
Recession | 0.25 | 20% | 4% | -5% | -6% | 6% | -4% |
A) Expected Returns | |||||||
E[RA] | E[RB] | E[RC] | E[RD] | E[RE] | E[RF] | ||
24% | 2.25% | 4.75 | 7.75% | 4.00% | 5.50% | ||
E) Portfolio EF | |||||||
WE | WF | CovEF | CorrEF | E[REF] | EF | ||
51% | 49% |
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