Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve the following questions using EXCEL FILE! Please provide excel file process. I have to answer these questions using excel. Please solve the following

Please solve the following questions using EXCEL FILE! Please provide excel file process. I have to answer these questions using excel.

Please solve the following questions using EXCEL FILE! Please provide excel file process. I have to answer these questions using excel.

For 13, it would be ok unless somebody tell me how to solve the highest share ratio using Q.11

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

11 INumherc hero aro in Narimale not in nercont I Using the setup in \#11, construct another portfolio - this time, just a RANDOM portfolio so you can plug in any number in the portfolio cells with one constraint. The sum of the individual weights needs to be 1 (i.e., cell B174 needs to be 1 ). Sharpe Ratio of your randomly weighted portfolio Using the setup in \#11, construct another portfolio - this time, a portfolio whose Sharpe Ratio is the highest. For this, you need "SOLVER" in Excel (under [Data] - [Analyze]). If you do not see this in your Excel, you can add this by going to: [File] - [Options] - [Add-ins] - [Go...] - ->> in the pop-up box, click on "Solver Add-in" and click on "OK". The picture below will help find you with this addition. Once you are able to open the SOLVER, it will as you: 1. your objective - it should be you the portfolio Sharpe Ratio which is already set up in \#11. 2. cells you allow Excel SOLVER to changge - this should be the portfolio weights which are also set up in \#11 (cells B168-B172). 3. any constraint(s) - this tims, just make sure that the sum of the individual weights is equal to zero (i.e., cell B174 needs to be 1). Then, click on "Solve" and the weights will change and the results show in in \#11. Record this highest Sharpe Ratio here

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Millionaire By Thirty The Quickest Path To Early Financial Independence

Authors: Douglas R. Andrew, Emron Andrew, Aaron Andrew

1st Edition

0446501840, 978-0446501842

More Books

Students also viewed these Finance questions