Question: Hi, I need help understanding this in excel. Please use numbers and not cell references if possible. Question 5: The returns for two assets, A

Hi,

I need help understanding this in excel. Please use numbers and not cell references if possible.

Question 5:
The returns for two assets, A and B, have been estimated under different scenarios in the year ahead as follows:
Scenario Probability Asset A Return Asset B Return
Deep Recession 20% -5,30% -1,50%
Mild Recession 30% -1,50% 1,70%
Normal Conditions 30% 5,80% 5,20%
Good Economic Conditions 15% 16,00% 7,90%
Great Economic Conitions 5% 23,70% 12,30%
(a) Calculate the Expected Return and the Standard Deviation for each of these assets separately.
(b) Assuming these are the only two investment options available to you, prepare the efficient frontier, showing the varios risk-return profiles you could achieve by investing in different combinations (weights) of these assets.

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