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Task 4: Now using a matrix multiplication (i.e. MMULT in Excel.), compute two portfolio returns and portfolio variances. Use the formula: portfolio return: E(R P
Task 4:
Now using a matrix multiplication (i.e. MMULT in Excel.), compute two portfolio returns and portfolio variances.
Use the formula: portfolio return: E(RP) = w * rT
portfolio variance: P2 =wwT
PLEASE SHOW WORK. Thank you!
Stock 1 Stock 2 Apple Inc. (AAPL) PepsiCo, Inc. (PEP) Date Adj Close Monthly Return (%) Adj Close Monthly Return (%) 01-05-2019 172.341583 124.479256 01-06-2019 195.58577 13.49% 127.523163 2.45% 01-07-2019) 210.527466 7.64% 125.204521 -1.82% 01-08-2019 206.278168 -2.02% 133.942688 6.98% 01-09-2019 222.169479 7.70% 134.305145 0.27% 01-10-2019 246.760193 11.07% 135.302307 0.74% 01-11-2019 265.101563 7.43% 133.98056 -0.98% 01-12-2019 292.163818 10.21% 134.809113 0.62% 01-01-20201 307.943604 5.40% 141.06749 4.64% 01-02-2020 271.976532 -11.68% 131.144485 -7.03% 01-03-2020) 253.6035 -6.76% 119.294495 -9.04% 01-04-20201 293.006836 15.54% 132.289993 10.89% 01-05-2020 309.292755 5.56% 134.229996 1.47% Average Return =Average(Returns) =Average(Returns) 5.30% 0.77% Standard Deviation ESTDEV.P(Returns) ESTDEV.P(Returns) 7.81% 5.22% Stock 1 Stock 2 Apple Inc. (AAPL) PepsiCo, Inc. (PEP) Date Adj Close Monthly Return (%) Adj Close Monthly Return (%) 01-05-2019 172.341583 124.479256 01-06-2019 195.58577 13.49% 127.523163 2.45% 01-07-2019) 210.527466 7.64% 125.204521 -1.82% 01-08-2019 206.278168 -2.02% 133.942688 6.98% 01-09-2019 222.169479 7.70% 134.305145 0.27% 01-10-2019 246.760193 11.07% 135.302307 0.74% 01-11-2019 265.101563 7.43% 133.98056 -0.98% 01-12-2019 292.163818 10.21% 134.809113 0.62% 01-01-20201 307.943604 5.40% 141.06749 4.64% 01-02-2020 271.976532 -11.68% 131.144485 -7.03% 01-03-2020) 253.6035 -6.76% 119.294495 -9.04% 01-04-20201 293.006836 15.54% 132.289993 10.89% 01-05-2020 309.292755 5.56% 134.229996 1.47% Average Return =Average(Returns) =Average(Returns) 5.30% 0.77% Standard Deviation ESTDEV.P(Returns) ESTDEV.P(Returns) 7.81% 5.22%Step by Step Solution
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