Question: PLEASE ANSWER THE QUESTION USING EXCEL AND SHOW ALL THE WORK AND FOMRULAS USED IN EXCEL. 5% 33% 6. The following table contains the probability
PLEASE ANSWER THE QUESTION USING EXCEL AND SHOW ALL THE WORK AND FOMRULAS USED IN EXCEL. 5% 33% 6. The following table contains the probability distribution for the returns of three securities over the next year. Expected Returns Scenario Probability -17% .9% 11% 17% 7% 14% 25% 19% 29% 27% 34% -17% 35% 44% -27% a) Determine the expected return and standard deviation of each security. b) Calculate a variance and covariance matrix for these four securities using the given probabilities. c) Calculate a set of five portfolios that make up the capital market line using the Solver. d) Create a chart of the CML including the original securities 17% T-bills 3% 3% 3% 3% 0.03 0.07 0.15 0.50 0.15 0.07 0.03 #2 #3 N4 NS W6 W7 7% 1% 3%
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