Question: Please provide EXCEL formula on how to solve this problem Suppose the expected returns and standard deviations of Stocks A and B are E( R
Please provide EXCEL formula on how to solve this problem
| Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .086, E(RB) = .146, A = .356, and B = .616. |
| a-1. | Calculate the expected return of a portfolio that is composed of 31 percent Stock A and 69 percent Stock B when the correlation between the returns on A and B is .46. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| a-2. | Calculate the standard deviation of a portfolio that is composed of 31 percent Stock A and 69 percent Stock B when the correlation between the returns on A and B is .46. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on Stocks A and B is .46. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
a-1 Expected return ______________%
a-2 Standard Deviation ______________%
b. Standard deviation ________________%
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