PLEASE SHOW ALL IN EXCEL/EXCEL FORMAT

Consider the following data of X and Y stocks and a risk-free asset.

a. What are the return and standard deviation of the minimum variance portfolio

of X and Y stocks?

b. What are the return and standard deviation of a portfolio composed of 30% of

the minimum variance portfolio and 70% of the risk-free asset? Repeat this

question with weights of 50% for the risk-free asset and the minimum variance

portfolio.

c. Mary Jones asks you to create a portfolio composed of the risk-free asset

and the minimum variance portfolio. Mary wants an expected return of 9%.

What will be the percentage of the portfolio invested in the risk-free asset

and in the minimum variance portfolio?

d. Kaid Benfield wants a portfolio composed of the risk-free asset and the

minimum variance portfolio. Find a portfolio for Kaid that has a standard

deviation of returns of 5%.

e. What is the Sharpe ratio of the minimum variance portfolio of Part a? Show

another portfolio composed of stocks X and Y that has a better Sharpe ratio.

1 RETURNS OF X AND Y STOCKS 2 3 Average return 4 Variance 5 covariance of return 6 7 Risk-free return 19.00% | 13.00% 0.090.015 0.01 3.00%