Question: By using the excel spreadsheet , compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A,

By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? The total amount you invested in the portfolio is $150,000, where $33,500 of this amount of money is invested in stock A and $45,000 is invested in stock B, the rest were invested in stock C.

State of Economy	Probability of state of Economy	Return if state Occurs
Stock A	Stock B	Stock C
Boom	20%	17%	6%	25%
Normal	45%	8%	10%	15%
Recession	???	1%	12%	-19%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Calculating Portfolio Expected Return and Standard Deviation in Excel Heres how you can calculate the expected return and standard deviation of your p... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A copper rod is sliding on two conducting rails that make an angle of 19 with respect to each other, as in the drawing. The rod is moving to the right with a constant speed of 0.60 m/s. A 0.38-T...

13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...

5 a) Discuss the importance of Bill of Material in MRP. (5 marks) b) Discuss the role of ISO in our lives. (5 marks) c) Explain how cost reduction can be achieved through cross docking. (5 marks)

Fill in the Blanks The giant tubeworms found in the hydrothermal vents are called lack both a gut and a mouth. Instead, they have an organ called a (types of elements, e.g. potassium, sulfur,...

Give three versions of a question to determine whether people think smoking should be completely banned in airports. Word the question to be as follows: a. Version 1: As unbiased as possible b....

Edmonson Corporation had the following purchases and issues during March: Required: Compute the cost of units issued and the cost assigned to the March 31 inventory by each of these perpetual...

5. Organize the lesson in a logical sequence; include checkpoints that incorporate oral or written questions or problems to make sure the students are following the explanations.

Flanders, Inc., has a $700,000, 8 percent bond issue that was issued a number of years ago at face value. There are now 10 years left on the bond issue, and the market interest rate is 16 percent....

Lee County Water District has a bond outstanding with a coupon rate of 3.65 percent and semiannual payments. The bond matures in 18 years, with a yield to maturity of 4.25 percent, and a par value of...

5. (9 points) Consider the Excel/@Risk analysis on a hypothetical income producing property shown below. The only input risk distribution defined in this analysis is the "Terminal CAP", which is...

Critically analyze the concept of anomie as developed by Emile Durkheim and discuss its relevance in understanding modern societal issues.

Explain the role of socialization in shaping individual behavior and identity.

Discuss the contributions of Emile Durkheim to sociology, particularly his concepts of social facts and collective conscience.

What is the effect of word war second?

Required information P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 [The following...

Jan 5, 2020 ABC Sold goods costing $200,000 for $550,000 to XYZ; term 2/10; n/30; FOB destination and ABC paid $3,500 shipping cost. Jan 10, XYZ returned $50,000 goods that cost $30,000. Feb 4,...

At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each....

Let X be the number of heads when we toss a coin twice. Then E(X2) = 32.

Then for the random variable Y = 3X2 5X, we have E(Y) = 1.

If a random variable X takes two values x1, x2 with x1 x2, then Var(X) > [E(X)]2.