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yes i need it in excel but yo be clear Case 2 9 17 12 Mike is considering investing in three different stocks or creating
yes i need it in excel but yo be clear
Case 2 9 17 12 Mike is considering investing in three different stocks or creating three distinct two stock portfolios. Mike considers himself to be a rather conservative investor, he is able to obtain forecasted returns for the three securities for the years 2015 through 2021. The data are given in the following table. Year Stock X Stock Y Stock Z 2012 9 2013 15 2014 1 4 11213 13 2015 16 15 12 2016 13 12 | 16 2017 10 17 2018 112 13 2019 10 15 2020 111 10 2021 1211 9 119 In any of the possible two-stock portfolios, the weight of each stock in the portfolio will be 50%. The three possible portfolio combinations are XY, XZ, and YZ. TO DO Create a spreadsheet to answer the following: a. Calculate the expected return for each individual stock. b. Calculate the standard deviation for each individual stock. c. Calculate the expected returns for portfolios XY, XZ, and YZ d. Calculate the standard deviations for portfolios XY, XZ, and YZ. e. Would you recommend that Mike invest in the single stock X or the portfolio consisting of stocks X and Y? Explain your answer from a risk-return viewpoint. f. Would you recommend that Mike invest in the single stock Y or the portfolio consisting of stocks Y and Z? Explain your answer from a risk-return viewpoint Step by Step Solution
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