Question: Please use EXCEL for calculation and show the work clearly. Thank you Question 3. Consider a portfolio of Alibaba and Pepsi stock. Suppose an investor

Please use EXCEL for calculation and show the work clearly. Thank you

Please use EXCEL for calculation and show the work clearly. Thank you

Question 3. Consider a portfolio of Alibaba and Pepsi stock. Suppose an investor believe these stocks are uncorrelated and will perform as follows: Stock Alibaba Pepsi Expected return 26% 6% Volatility 50% 25% a. How should the investor choose a portfolio of these two stocks? That is, compute return and volatility of portfolios with 0% and 100%, 20% and 80%, 40% and 60% mix, draw portfolio frontier and mark efficient portfolios and inefficient portfolios. b. Dan has invested 100% of his money in Pepsi but would like to earn the highest expected return without increasing his volatility. Which portfolio would you recommend? Question 3. Consider a portfolio of Alibaba and Pepsi stock. Suppose an investor believe these stocks are uncorrelated and will perform as follows: Stock Alibaba Pepsi Expected return 26% 6% Volatility 50% 25% a. How should the investor choose a portfolio of these two stocks? That is, compute return and volatility of portfolios with 0% and 100%, 20% and 80%, 40% and 60% mix, draw portfolio frontier and mark efficient portfolios and inefficient portfolios. b. Dan has invested 100% of his money in Pepsi but would like to earn the highest expected return without increasing his volatility. Which portfolio would you recommend

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