Question
Please use the following information above to answer the questions below and use accurate excel formulas to get answers from data given above in pictures
Please use the following information above to answer the questions below and use accurate excel formulas to get answers from data given above in pictures
1. Amortized loan. Suppose you want to purchase a 2024 Ford Mustang Mach-E from a local Ford dealer. Its out-the-door price is $55,000. You plan to finance the car with a 5-year loan. The loans annual interest rate is 7.99%, and it requires a down payment of $18,000 (made today) and additional 60 equal monthly payments. The first monthly payment is scheduled in a month.
- First, compute the equal monthly payment using your financial calculator. Show the setup of your calculator in the corresponding area of the first image above of the attached excel spreadsheet.
- Set up the amortization schedule that shows the monthly payments, interest payments, principal repayments, and beginning and ending loan balances from months 1 to 60 in the corresponding area of the first image of the attached Excel spreadsheet.
2. Risk and Return. Complete the second part using the pictures above of the attached Excel spreadsheet by filling out all the green cells.
Probability Distribution The probability distribution is a listing of all possible outcomes and the corresponding probability. 1. Probability Distributions: Calculate Expected Returns 2. Probability Distributions: Calculate Standard Deviation 2.1 Calculate Martin Products' Standard Deviation \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ 2.1 Calculate Martin Products' Standard Deviation } \\ \hline & & Rate of & & & & \\ \hline Economy, & Probability & Return & Deviation: & & & \\ \hline Which & of This & if This & Actual - & & Squared & \\ \hline Affects & Demand & Demand & Expected & Deviation & Deviation & \\ \hline Demand & Occurring & Occurs & Return & Squared & Prob. & \\ \hline (1) & (2) & (3) & (4) & (5) & (6) & \\ \hline Strong & 0.20 & 50% & & & & \\ \hline Normal & 0.30 & 10% & & & & \\ \hline \multirow[t]{3}{*}{ Weak } & 0.50 & 50% & & & & \\ \hline & & & & Variance = & & \\ \hline & & & \multicolumn{2}{|c|}{ Standard deviation =} & & \\ \hline \multicolumn{7}{|c|}{ 2.2 Calculate U.S. Water's Standard Deviation } \\ \hline & & Rate of & & & & \\ \hline Economy, & Probability & Return & Deviation: & & & \\ \hline Which & of This & if This & Actual - & & Squared & \\ \hline Affects & Demand & Demand & Expected & Deviation & Deviation & \\ \hline Demand & Occurring & Occurs & Return & Squared & x Prob. & \\ \hline (1) & (2) & (3) & (4) & (5) & (6) & \\ \hline Strong & 0.20 & 18% & & & & \\ \hline Normal & 0.30 & 10% & & & & \\ \hline \multirow[t]{3}{*}{ Weak } & 0.50 & 2% & & & & \\ \hline & & & & Variance = & & \\ \hline & & & \multicolumn{2}{|c|}{ Standard deviation =} & & \\ \hline \multicolumn{7}{|c|}{ 3. Calculate Coefficient of Variation } \\ \hline \multicolumn{7}{|c|}{\begin{tabular}{l} A problem sometimes arises when comparing standard deviations of different securities. If they \\ have different expected returns, you may not be able to compare them. The coefficient of \\ variation shows risk per unit of expected return. \end{tabular}} \\ \hline & & & & \multicolumn{2}{|l|}{ Risk-free Rate } & 4.00% \\ \hline \multicolumn{2}{|c|}{ CV for Martin } & & & \multicolumn{2}{|c|}{ Sharpe ratio for Martin } & \\ \hline \multicolumn{2}{|c|}{ CV for U.S. Water } & & & \multicolumn{2}{|c|}{ Sharpe ratio for U.S. Water } & \\ \hline \end{tabular} SAMPLE More often in finance, you are dealing with a sample of historical data. In this case you need to calculate a sample average return and sample standard deviation. 4. Find Sample Average and Sample Standard Deviation Based on Historical Data Excel Function s=Step by Step Solution
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