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Please solve giving full formula M52 2) Then, generate the monthly returns using the weights and the stock returns, based on the portfolio return formula

Please solve giving full formula
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M52 2) Then, generate the monthly returns using the weights and the stock returns, based on the portfolio return formula found on page 3 in Class Slide 12: 41 31-May-23 rtfolio 30-Jun-23 WARA + WBRB Portfolio Date Monthly total return* (l+return) 47 30-Nov-22 31-Dec-22 31-Jan-23 28-Feb-23 31-Mar-23 30-Apr-23 31-Jul-23 31-Aug-23 30-Sep-23 31-0ct-23 30-Nov-23 Part 4. Compute the overall holding period return (HPR) from 11/30/2022 to 11/30/2023, the monthly arithmetic average return, standard deviation, and the Sharpe ratio for each stock and the portfolio. Then, highlight the asset that has the highest Sharpe ratio. 49 1) Calculate the HPR, average return, standard deviation, and Sharpe ratio using the monthly returns from Parts 2 and 3-2. Use 1% as the risk-free rate for the Sharpe ratio. 51 one year HPR* Boeing Co. Eli Lilly & co. Portfolio Average monthly Standard deviation Sharpe ratio return * Hint: For Overall holding period return (HPR), use the Excel math function PRODUCT, with the cells in the l+return row used as the input values. Then, subtract 1 from the products. 57 2) Alternatively, compute the portfolio's standard deviation using the formula on page 15 in Class slide 12: CAB VarAB WA20A2 + W 20k + 2WAWBPABOAOB Correlation Portfolio Variance Standard deviation ** Hint: Use the Excel command CORREL() to compute the correlation between the two stocks' returns. If done correctly, cells E55 and E60 should contain the same value. 61 Part 5. Ifyou wish to invest in these two stocks for another month, what would be the optimal weights to potentially yield the maximum Sharpe ratio for the portfolio? * Hint: Start by changing the equation in cell C39 to =1-C38, ensuring the sum of the weights for Boeing in C38 and Eli Lilly in C39 equals 100%. 67 : Then, use any one of the following three methods to find the optimal portfolio weights: Adjust the value in cell C38 to find the highest Sharpe ratio value for the portfolio in cell F55. Use the Data > What-If Analysis > Data Table function to obtain the optimal weights, as demonstrated in class. Utilize the Data > Solver function for Excel's optimization. 71 72 73 74 75 76 Optimal weights * Boeing Co. Eli Lilly & co. Portpolio Sharpe ratio

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