Question: PLEASE ANSWER USING CELL REFERENCES Problem 12-8 Stocks A and B have the returns given in the table below. Complete the steps below using cell

 PLEASE ANSWER USING CELL REFERENCES Problem 12-8 Stocks A and B

PLEASE ANSWER USING CELL REFERENCES

Problem 12-8 Stocks A and B have the returns given in the table below. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70% stock A and 30% stock B? Year 1 2 3 4 5 Stock A 10% 7% 15% -5% 8% Stock B 6% 2% 5% 1% -2% a. What are the expected returns of the two stocks? Stock A Stock B Average return b. What are the standard deviations of the returns of the two stocks? Stock A Stock B Standard deviation c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70% stock A and 30% stock B? Correlation Stock A holding Stock B holding 0.46 70% 30% Expected return Standard deviation Problem 12-8 Stocks A and B have the returns given in the table below. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70% stock A and 30% stock B? Year 1 2 3 4 5 Stock A 10% 7% 15% -5% 8% Stock B 6% 2% 5% 1% -2% a. What are the expected returns of the two stocks? Stock A Stock B Average return b. What are the standard deviations of the returns of the two stocks? Stock A Stock B Standard deviation c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70% stock A and 30% stock B? Correlation Stock A holding Stock B holding 0.46 70% 30% Expected return Standard deviation

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