A financial analyst recorded the quarterly returns on investment for three shares and stored the data in file 2RETURN.xlsx. Using the data and performing the calculations in EXCEL, answer the following questions.

1. a Calculate the mean and variance of each of the three shares.

b If you wish to construct a portfolio that maximises the expected return, what should you do?

c If you wish to construct a portfolio that minimises the risk, what should you do?

B. a Find the expected value and variance of the following portfolio:

Share 1 30%

Share 2 40%

Share 3 30%

b How do the expected value and variance of the portfolio compare with those of Part A?

C. a Find the expected value and variance of the following portfolio:

Share 1 10%

Share 2 10%

Share 3 80%

b How do the expected value and variance of the portfolio compare with those of Part A and Part B(a)?

Here is the link for data

https://1drv.ms/x/s!AqswQjmPQpq6jxaRUgQrRGVXgHRm?e=E4k2Bt

Answer rating: 100% (QA)

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