Question: USE DATA BELOW AND SHOW ANSWERS IN EXCEL, please. Using EXCELs Data Table Feature, create a one-way data table that determines the different means and

USE DATA BELOW AND SHOW ANSWERS IN EXCEL, please.

Using EXCELs Data Table Feature, create a one-way data table that determines the different means and standard deviations for combinations of Portfolio 1 and Portfolio 2 by varying the proportion of Portfolio 1. b. Graph the combinations of the portfolios from the one-way data table and add the individual asset means and standard deviations to the graph. c. Using EXCELs Text Box feature, explain why the envelope portfolios may or may not be on the efficient frontier? d. Using Solver or Goal Seek, find an envelope portfolio that would yield an expected return of 6%. What would be the corresponding portfolio standard deviation? e. Using Solver or Goal Seek, find two envelope portfolios that would yield a standard deviation of 10%. What would be the corresponding expected returns for each of these portfolios? f. Using Solver, find the envelope portfolio that would yield the smallest (minimum) standard deviation. What would be the corresponding expected return and standard deviation for this portfolio?

Variance-covariance matrix Means Asset Port. 1 Investment Port. 2 Investment
Stock A Stock B Stock C Stock D Stock E
Stock A 0.0016 0.0004 0.0022 0.0006 0.0017 1.75% Stock A $900 $700
Stock B 0.0004 0.0361 0.0028 0.0101 0.0029 10.00% Stock B $500 $1,200
Stock C 0.0022 0.0028 0.0225 0.0082 0.0064 2.50% Stock C $700 $600
Stock D 0.0006 0.0101 0.0082 0.0081 0.0039 2.75% Stock D $800 $900
Stock E 0.0017 0.0029 0.0064 0.0039 0.0064 3.00% Stock E $600 $800

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