Question: please show in Excel. Also, please show all formulas used for the equations, thank you! 3) Using an index model, and the information on the

please show in Excel. Also, please show all formulas used for the equations, thank you!

3) Using an index model, and the information on the following two stocks, estimate the standard deviations of Stocks A and B. Compute the expected return, standard deviation, and beta of the following portfolio Stock A. 30% Stock B. 45% Risk Free. 25% Stock Expected Return Beta Firm-Specific Standard Deviation A 13% 0.8 30% B 18 1.2 40 The market index has a standard deviation of 22% and the risk-free rate is 8%

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