Question: Please provide EXCEL formula on how to solve problem Security F has an expected return of 10.7 percent and a standard deviation of 43.7 percent
Please provide EXCEL formula on how to solve problem
| Security F has an expected return of 10.7 percent and a standard deviation of 43.7 percent per year. Security G has an expected return of 15.7 percent and a standard deviation of 62.7 percent per year. |
| a. | What is the expected return on a portfolio composed of 37 percent of Security F and 63 percent of Security G? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | If the correlation between the returns of Security F and Security G is .32, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
a. Expected return _______________%
b. Standard Deviation ______________%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
