Question 1:

By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? The total amount you invested in the portfolio is $95,000, where $33,000 of this amount of money is invested in stock A and $20,000 is invested in stock B, the rest were invested in stock C.

State of Economy	Probability of state of Economy	Return if state Occurs
		Stock A	Stock B	Stock C
Boom	10%	17%	6%	22%
Normal	30%	8%	10%	15%
Recession	60%	-3%	19%	-25%

Note: (You must show all steps in finding the Standard Deviation)

Expert Answer

Only Excel and show formulas and steps