Question: Please provide an explanation on how to do this task in Excel. Task: As an investment banker, you are responsible for a portfolio of assets
Please provide an explanation on how to do this task in Excel.
Task: As an investment banker, you are responsible for a portfolio of assets and you need to calculate various scenarios for its future values. Based on past records as well as current expectations, the portfolio is expected to grow by 1 million, with a standard deviation of 500,000 over the next year. The returns are considered normally distributed. Calculate the following scenarios: 1. Potential loss to the portfolio equivalent to 4% probability. 2. Probability that the portfolio growth will be higher than 500,000. 3. Probability that the portfolio's return will be under 0.8 or over 2.2 million
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
