Question: PLEASE SHOW USING EXCEL Consider the following probability distribution for stocks A, B, and C: State of Economy Probability Ret. on A Ret. on B
PLEASE SHOW USING EXCEL
Consider the following probability distribution for stocks A, B, and C:
| State of Economy | Probability | Ret. on A | Ret. on B | Ret. On C |
| 1 | 0.1 | 10% | 8% | 9% |
| 2 | 0.2 | 13% | 7% | 5% |
| 3 | 0.2 | 12% | 6% | 8% |
| 4 | 0.3 | 14% | 9% | 10% |
| 5 | 0.2 | 15% | 8% | 12% |
Find the expected rate of return and standard deviation of the global minimum variance portfolio. (Hint: find the expected returns, variances, and covariances first.)
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