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Use the Excel Template and the following Input Data to: 1)Find the minimum variance portfolio of risky assets 2)Construct the Efficient Frontier of risky assets
Use the Excel Template and the following Input Data to:
1)Find the minimum variance portfolio of risky assets
2)Construct the Efficient Frontier of risky assets
3)Find the Optimal Portfolio of risky assets by maximizing the Sharpe Ratio
please show formulas in excel
Input Data | ||||
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Summary Statistics |
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Asset | A | B | C | Rf |
E(r ) | 8% | 15% | 4% | 2% |
SD | 10% | 22% | 8% |
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Covariance Matrix of Risky Assets |
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| A | B | C |
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A | 0.0100 | 0.0066 | 0.0000 |
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B | 0.0066 | 0.0484 | 0.0044 |
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C | 0.0000 | 0.0044 | 0.0064 |
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Correlation Matrix of Risky Assets |
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| A | B | C |
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A | 1.000 | 0.300 | 0.000 |
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B | 0.300 | 1.000 | 0.250 |
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C | 0.000 | 0.250 | 1.000 |
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