Question: Please solve using excel please and show formula used in excel please Problem Six (15 marks) You work for a small investment management firm. You

Please solve using excel please and show formula used in excel please

Please solve using excel please and show formula
Problem Six (15 marks) You work for a small investment management firm. You have been provided with the following historical information for three stocks and the market index. The information is shown in the table below. AAA Inc BBB Inc. CCC Inc. Stock Dividend Stock Dividend Stock Dividend Market Price Price Price Index 2012 $38 $65 $150 18.840 2013 $41 $0.70 $70 $1.40 $125 $3.50 20.320 2014 $45 $0.70 $54 $1.55 $135 $3.60 22,220 2015 $52 $0.85 $62 $1.65 $140 $3.65 25,325 2016 $42 $0.90 $85 $1.75 $120 $3.65 19,520 2017 $55 $0.95 $95 $1.90 $162 $3.75 24,100 2018 $62 $1.00 $80 $2.00 $187 $3.80 25,500 2019 $75 $1.05 $92 $3.20 $203 $4.33 29,020 2020 $83 $1.20 $115 $3.50 $218 $4.85 33,572 2021 $97 $1.35 $140 $4.00 $235 $5.45 39,372 2022 $80 $1.35 $96 $4.00 $195 $5.45 36.283 Using the data provided you are to calculate the following for each of the stocks and the market index a) What is the average annual return for the past ten years? b) What is the geometric average annual return (effective annual rate of return) for the past ten years? c) What is the population standard deviation and the sample standard deviation? d) What is the correlation coefficient between Stocks AAA and BBB? Between Stocks AAA and CCC? Between Stocks BBB and CCC? e) What is the sample covariance between Stocks AAA and BBB, between Stocks AAA and CCC and between stocks BBB and CCC? f) What is the coefficient of variation for each of the stocks and the market index? You should use the sample standard deviation. g) What is the beta of each of the stocks? You can use Excel's "slope" function to estimate this. h ) Assume that the beta of stock AAA is 0.60, the beta of stock BBB is 1.50 and the beta of stock CCC is 2.10. What is the beta of a portfolio where the weight in stock AAA is 35% the weight in stock BBB is 45% and the weight in stock CCC is 20%? i) Assuming the risk-free rate is 3.75% and the market risk premium is 7.70% what is the expected return on the portfolio in part (h) above

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