Need help with this excel sheet. I'm not understanding how formulas. thank you

Adapted by Robert Timmons, D.B.A. 2010 - 2015 Managerial Finance BUS 8003 Chapter 11 8e Selected Problems 1 - 28 Printer Friendly NOTE: The problem numbers on the following worksheets correspond with the same End-of-Chapter problems of Essentials of Corporate Finance, 8th Edition. Adapted and Modified from Essentials of Corporate Finance (Ross, Westerfiled & Jordan) 8th Edition Robert Timmons, D.B.A - Revised July, 2015 Chapter 11 8e Note: Use your text and provided resources! See Problem details beginning page 382 Selected Questions 1 - 28 See Key Equations used beginning page 614 See Excel examples "Supplemental Text Provided Worksheet 8e.xls See selected problem solutions beginning page 617 Question 1 Shares of A Share price of A Shares of B Share price of B $ $ 135 71.00 95 84.00 Portfolio value Incorrect Weight of A Incorrect Weight of B Incorrect Question 4 Portfolio value Stock X E(R) Stock Y E(R) Portfolio E(R) $ 10,000 14.00% 11.00% 12.40% Weight of Stock X Incorrect Weight of Stock Y Incorrect Dollar in Stock X Incorrect Dollars in Stock Y Incorrect Question 6 State Recession Normal Boom Incorrect Probability 0.20 0.50 Return -9.00% 11.00% 30.00% Portfolio Expected return Product Incorrect Incorrect Incorrect Incorrect Question 10 Question #10 State Probability Stock A Stock B Stock C Boom 0.15 0.35 0.45 0.33 Good 0.50 0.12 0.10 0.17 Poor 0.25 0.01 0.02 -0.05 has been eliminated from this assignment. Sept. 27, 2016 Bust 0.10 -0.11 -0.25 -0.09 weights 0.30 0.40 0.30 *See Chpt. 11 PowerPoint slide 11-8 & text beginning page 357 for examples. Stock A Boom Good Poor Bust Standard Deviation = Probability 0.15 0.50 0.25 0.10 SQRT f C C C Portfolio Return 0.38 0.13 0.00 -0.16 E(R) = 14.80% Product 0.06 0.06 0.00 -0.02 0.1041 Correct Return Deviation 0.28 0.02 -0.11 -0.26 =SQRT(K74) SQRT of Variance = Std. Dev. Question 12 Weight of risk-free 33.33% Formula for CAPM: E(R)A = RF + [E(R)M - RF] x A Weight of Stock A 33.33% Weight of Stock B Beta of risk-free Beta of Stock A Beta of Portfolio 33.33% 0.00 1.42 1.00 translation Expeccted ReturnAsset = Risk Free Rate + [Expe Solve for the Beta of Stock B (BetaP - (WeightRF x BetaRF) - (WeightA x BetaA)) / WeightB Beta of Stock Incorrect Question 13 Beta Market E(R) Risk-free return 1.15 10.90% 3.80% Expeccted ReturnAsset = Risk Free Rate + [Expe Solve for the Beta of Stock B Stock E(R) Incorrect Question 16 Stock E(R) Stock beta Market E(R) 12.50% 1.15 11.50% Expeccted ReturnAsset = Risk Free Rate + [Expe Solve for the Risk Free Rate Risk-free Incorrect Question 22 Portfolio value $ 250,000 Stock H E(R) Stock L E(R) Portfolio E(R) 13.50% 9.80% 11.40% Weight of Stock H Incorrect Weight of Stock L Incorrect Dollar in Stock H Incorrect Dollars in Stock L Incorrect Question 28 Amount invested $ 100,000.0 Portfolio E(R) 10.50% Stock D E(R) 13.20% Stock F E(R) 9.50% Risk-free return 3.80% Amount invested in D $ 50,000 Output area: Weight of Stock F Incorrect Weight of risk-free Incorrect Amount of stock F Incorrect Attention: Tests (and/or quizzes) in Managerial Finance WILL NOT include the CORRECT / INCORRECT indicators. Therefore, your goal should not be to merely arrive a solution that moves the indictor from INCORRRECT to CORRECT for this assignment, but to know how you arrived at the correct solution. The End d resources! ovided Worksheet 8e.xlsx" Revised 03/2013 Revised 07/2015 2016 X^2 Squared Deviation 0.07834 0.00052 0.01169 0.06975 Variance = Product 0.0117516015 0.000262205 0.0029214025 0.006974881 0.02191 Correct Correct Correct Correct Correct =J70*D70 =J71*D71 =J72*D72 =J73*D73 =K70+K71+K72+K73 Risk Free Rate + [Expected ReturnMarket - Risk Free Rate] x BetaAsset Risk Free Rate + [Expected ReturnMarket - Risk Free Rate] x BetaAsset Risk Free Rate + [Expected ReturnMarket - Risk Free Rate] x BetaAsset