Use the following information to answer questions 1 through 10:

You are trying to form portfolios based on the following information about Stocks A,B,C and D

Expected Return of Stock A = 5%; Stock B = 8%; Stock C = 15%; Stock D = 21%

The Standard Deviation of Stock A = 12%; Stock B = 18%; Stock C = 32%; Stock D = 40%

The Correlation between A,B = - 0.05; A,C = 0.10, A,D = 0.07; B,C = 0.20; B,D = 0.50; C,D = 0.35

The Risk-Free Rate is 4.0%

Using Excel, do/answer the following:

Question 3, 4 and 5: Assume that you use a nave diversification approach and put 25% of your money equally into each stock. Compute the Expected Return, Standard Deviation and Sharpe Ratio of such a portfolio.

12.25

I NEED HELP WITH THE FORMULA FOR EXCEL TO FIND THE STANDARD DEVIATION. I am attaching my data with the formula I am using. I really just need to know what I'm doing wrong in my variance formula.

A B D 0.05 0.08 Ex. Ret. A Ex. Ret. B Ex. Ret. C Ex. Ret. D 0.15 Expected Return: Std. Deviation: Variance: Sharpe Ratio: 0.1225 =D4^0.5 =(B16^2)*(B5^2)+(B17^2)*(B6^2)+(B18^2)*(B7^2)+(B19^2)*(B8^2)+2*39*B10*B11*B12*B13*B14*15*16*B7*B8*B16*B17*B18*B19 0.21 0.12 0.18 0.32 0.4 -0.05 0.1 0.07 Std. Dev. A Std. Dev. B Std. Dev. C Std. Dev. D Cor(A,B) Cor(A,C) 1 Cor(A,D) e Cor(B,C) B Cor(B,D) 1 Cor(C,D) 5 r(f) Weight(A) 7 Weight(B) B Weight(C) Weight(D) 0.2 0.5 0.35 0.04 0.25 0.25 0.25 0.25