PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PROBLEM 2: Part-A Based on the following data; State of the Economy Probability Stock A Rate of Return Recession 0.2 -5% Low Growth 0.3 10% Normal Growth 0.5 20% Calculate the expected return and the standard deviation on Stock A. Part-B: Given the following historical data: Year Rate of return for Stock X Rate of Return for Stock Y 2020 25% 10% 2019 16% 12% 2018 14% 8% 2017 5% 10% Calculate the average return and the standard deviation of returns for a portfolio where 50% of the funds are invested in Stock X and the rest in Stock Y