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

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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