questions are not in excel

Use the information below to help answer questions 1-7 Excel's solver was used to create the Minimum Variance Frontier (MVF) Portfolios 1-6 are all on the MVF Portfolios 1-6 were created by weighting Stock W, Stock X, Stock Y, Stock Z Portfolios 1-5 are corner portfolios The risk free rate is 4% All return and risk figures are annualized 16949 9.99 22222 1. Assume a two risk asset portfolio with 50% Stock W and 50% Stock Z has a total risk of 29%. This implies the correlation between Stock Wand Stock Z is closest to: a)-1.0 b) -0.5 c) 0.0 d) 0.5 e) 1.0 2. Assume the covariance between Stock Wand Stock Z is 0.0170. A two risk asset portfolio constructed with 40% Stock Wand 60% Stock Z has a total risk closest to Round your answer to the nearest 0.1%. a) 19.3% b) 21.4% c) 24.1% d) 26.7% e) None of the above 3. Your portfolio is currently 100% Stock Z. Stock V (not listed above) has Sharpe Ratio of 0.30. The correlation of the two stocks is 0.90. Based on this information, you should add Stock V to your existing portfolio. Evaluate the underlined words in italics. True or False? a) True b) False 4. Which portfolio is most likely the optimal portfolio? a) Portfolio 1 b) Portfolio 2 c) Portfolio 3 d) Portfolio 4 e) Portfolio 5 5. Which of the following statements is(are) most likely FALSE? 1. If shorting were allowed, the Sharpe Ratio of the optimal portfolio might not improve II. To find the minimum variance portfolio, minimize the portfolio's total risk using Excel's solver III. Portfolio 6 is on the Minimum Variance Frontier a) I b) II c) III d) I & III e) None of the statements 6. This question is worth 2 points! Your client's current portfolio is $7,500 Stock W and $2,500 Stock Z. Using the weights in the corner portfolios, which of the following actions (I-III) would most likely be required to maintain the same expected return for your client while lowering the portfolio's total risk: I. Buy $6,750 Stock W II. Sell $1,000 Stock X III. Sell $2,500 Stock Z a) I b) II c) III d) I & III e) II & III 7. Your client's current retirement account is $500,000 Stock Z. The client does not own any other financial assets and absolutely refuses to make any new contributions to their tax sheltered retirement account from now until retirement. The client also requires $1,000,000 when they retire in exactly 7 years. Which of the following would be the best recommendation to make to your client: a) Congratulations! Based on your current portfolio holdings, I expect you will be able to retire in 7 years with at least $1M of financial capital, so my recommendation for the time being is not to make any changes b) Based on your current portfolio holdings, I do not expect you will be able to retire in 7 years with at least SIM of financial capital, so I recommend making additional contributions to your retirement account c) Based on your current portfolio holdings, I do not expect you will be able to retire with at least $IM of financial capital, so I recommend you wait a little longer to retire d) By diversifying your portfolio, I believe you will be able to retire in 7 years with at least SIM of financial capital without increasing your portfolio's total risk e) By diversifying your portfolio, I believe you will be able to retire in 7 years with at least $1M of financial capital, but your portfolio's total risk will have to increase