Question: Please show formulas on Excel. Stock A Stock B Average 11.00% 9.00% Variance 12.00% 10.00% Sigma 34.64% 31.62% Cov(rA,rB) 0.0400 Correlation(rA, rB) 3.3333 Part A.

Please show formulas on Excel.

Stock A

Stock B

Average

11.00%

9.00%

Variance

12.00%

10.00%

Sigma

34.64%

31.62%

Cov(rA,rB)

0.0400

Correlation(rA, rB)

3.3333

Part A. Calculate portfolio statistics

Percentage in A

50.00%

Percentage in B

50.00%

Expected portfolio return, E(rp)

Portfolio variance, Var(rp)

Portfolio standard deviation, p

Part B. Identify the minivariance portfolio that consists of stocks A and B, and report the results below

Percentage in A

Percentage in B

Part C. Draw a scatter chart below to show the efficient frointier. You may find it useful to list a few portfolio combinations in the following table first, and use the data as inputs to create the efficient frontier.

Percentage in A

Sigma

Expected return

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