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Please see the attached. I need the answers and associated excel formulas by 6est. Thank you very much! Problem 11-49 Consider a portfolio consisting of

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Please see the attached. I need the answers and associated excel formulas by 6est. Thank you very much!

image text in transcribed Problem 11-49 Consider a portfolio consisting of the following three stocks: HEC Corp Green Midget AliveAndWell Portfolio Weight 0.25 0.35 0.40 Volatility 12% 25% 13% The volatility of the market portfolio is 10% and it has an expected return of 8%. The ris a. Compute the beta and expected return of each stock. b. Using your answer from part a, calculate the expected return of the portfolio. c. What is the beta of the portfolio? d. Using your answer from part c, calculate the expected return of the portfolio and v to part b. Volatility of market portfolio Market expected return Risk-free rate 10% 8% 3% a. Compute the beta and expected return of each stock. Stock HEC Corp Green Midget AliveAndWell Beta E[R] b. Using your answer from part a, calculate the expected return of the portfolio. Expected return c. What is the beta of the portfolio? Beta d. Using your answer from part c, calculate the expected return of the portfolio and v to part b. Expected return Match? Requirements 1. In cell D24, by using relative and absolute cell references, calculate the beta for H 2. To calculate the betas for Green Midget and AliveAndWell, copy cell D24 and pas 3. In cell E24, by using relative and absolute cell references, calculate the expected r 4. To calculate the expected returns for Green Midget and AliveAndWell, copy cell E E25:E26 (1 pt.). 5. Calculate the expected return of the portfolio by using the function SUMPRODU function SUMPRODUCT and cell references, calculate the expected return of the 6. Calculate the beta of the portfolio by using the function SUMPRODUCT. In cell SUMPRODUCT and cell references, calculate the beta of the portfolio (1 pt.). 7. In cell D38, by using cell references, calculate the expected return of the portfolio 8. To verify that your answer for part (d) matches your answer for part (b), you need of the portfolio in part (d) with the expected return of the portfolio in part (b). In c pt.). e stocks: Correlation with Market Portfolio 0.4 0.6 0.5 as an expected return of 8%. The risk-free rate is 3%. stock. xpected return of the portfolio. xpected return of the portfolio and verify that it matches your answer stock. xpected return of the portfolio. xpected return of the portfolio and verify that it matches your answer l references, calculate the beta for HEC Corp (1 pt.). liveAndWell, copy cell D24 and paste it onto cells D25:D26 (1 pt.). references, calculate the expected return for HEC Corp (1 pt.). idget and AliveAndWell, copy cell E24 and paste it onto cells by using the function SUMPRODUCT. In cell D30, by using the , calculate the expected return of the portfolio (1 pt.). function SUMPRODUCT. In cell D34, by using the function e the beta of the portfolio (1 pt.). the expected return of the portfolio (1 pt.). s your answer for part (b), you need to compare the expected return eturn of the portfolio in part (b). In cell D39, type either Yes or No (1

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