Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the table below for Home Depot (HD) and Lowes (LOW) to create an Excel spreadsheet that calculates the average returns for portfolios that comprise

Use the table below for Home Depot (HD) and Lowes (LOW) to create an Excel spreadsheet that calculates the average returns for portfolios that comprise HD and LOW using the following, respective, weightings: (1.0, 0.0), (0.9, 0.1), (0.8, 0.2), (0.7, 0.3), (0.6, 0.4), (0.5, 0.5), (0.4, 0.6), (0.3, 0.7), (0.2, 0.8), (0.1, 0.9), and (0.0, 1.0). Also, calculate the standard deviation associated for each portfolio.

image text in transcribed

Year HD Returns LOW Returns Portfolio 2005 -4.30% 16.10% 5.90% 2006 1.00% -6.10% -2.55% 2007 -31.10% -26.80% -28.95% 2008 -11.40% -3.30% -7.35% 2009 30.50% 10.60% 20.55% 2010 25.00% 17.10% 9.20% 3.40% 2011 23.50% 13.45% 2012 50.30% 42.90% 46.60% 2013 35.90% 41.80% 38.85% 2014 30.20% 41.20% 35.70% 2015 28.60% 12.10% 20.35% 2016 4.00% -0.10% 1.95% 2017 44.60% 26.90% 35.75% SD 23.84% 20.86% 21.38% 12.92% 15.18% Average 17.45% Correlation 0.82911813 Year HD Returns LOW Returns Portfolio 2005 -4.30% 16.10% 5.90% 2006 1.00% -6.10% -2.55% 2007 -31.10% -26.80% -28.95% 2008 -11.40% -3.30% -7.35% 2009 30.50% 10.60% 20.55% 2010 25.00% 17.10% 9.20% 3.40% 2011 23.50% 13.45% 2012 50.30% 42.90% 46.60% 2013 35.90% 41.80% 38.85% 2014 30.20% 41.20% 35.70% 2015 28.60% 12.10% 20.35% 2016 4.00% -0.10% 1.95% 2017 44.60% 26.90% 35.75% SD 23.84% 20.86% 21.38% 12.92% 15.18% Average 17.45% Correlation 0.82911813

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Finance In China Theory And Implementation Enrich Series On Development Finance In China Volume 1

Authors: Enrich Professional Publishing

1st Edition

9814298107, 9814298115, 9789814298117

More Books

Students also viewed these Finance questions