Question: Using excel , compute the expected return and standard deviation for this portfolio by completing the below table. Assume a risk-free rate of 0.25%. Closing

Using excel, compute the expected return and standard deviation for this portfolio by completing the below table.

Assume a risk-free rate of 0.25%.

Closing price stock 1

20.440001

18.84

16.799999

17.23

17.15

17.389999

18.200001

17.700001

17.719999

17.83

Closing price stock 2

22.02

19.299999

16.370001

16.01

16.120001

16.110001

16.1

18.4

17.700001

17.200001

18.5

18.68

Using excel, compute the expected return and standard deviation for this

Compute the stocks average return, variance, and standard deviation using historical data -

and then Compute the expected return and standard deviation for this portfolio ( of both stocks)using the weight invested. the Portfolio contains the risk-free asset. Assume a risk-free rate of 0.25%.

Weight invested in Stock 1 0% portfolio 1 expected return Portfolio 1 standard deviation 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

help mi with my questions 21. There are three assets, A, B and C, where A is the market portfolio and C is the risk-free asset. The return on the market has a mean of 12% and a standard deviation of...

Hi...tutors. 20. Your current portfolio consists of three assets, the common stock of IBM and GM combined with an investment in the riskless asset. You know the following about the stocks (p,,...

help mi Consider a European put option on a stock index without dividends, with 6 months to expiration, and a strike price of 1,000. Suppose that the nominal annual risk-free rate is 4% convertible...

Its about swaps show calculations 20. In August 1993 the Bank of Thailand was reported as offering to foreign investors in troubled banks the opportunity to resell their share; back to the central...

13.( 1 pt) For each of the following situations, indicate whether ANOVA is appropriate; if not appropriate, the reason why not; and, if appropriate, the type of ANOVA that would be used (i.e.,...

1. Security B has a price of $35 and a beta of 1.4. The risk-free rate is 5% and the market risk premium is 6%. (a) According to the CAPM, what return do investors expect on the security? (b)...

Please answer this question in Excel, Consider the following joint PDF (1.75 points) a) Calculate the expected return of IBM and the market. (0.5 points) b) Calculate the variance of IBM and the...

Is this Possible ? kenneth brown is the principal owner of brown oil inc. After quitting his university teaching job. ken has been able to increase this annual salary by a factor of over 100. at the...

Calvin received the following research report from an investment consultant. Unfortunately, the beta coefficient for HK Speed is not available. Expected Return Beta Standard Deviation n/a 25% Hang...

Introduction: Risk is an important concept in financial analysis, especially in terms of how it affects security prices and rates of return. The risk and return tradeoff is defined as the principle...

A mixture of ideal gases is made up of 30 percent N2, 30 percent O2, and 40 percent H2O by mole fraction. Determine the Gibbs function of the N2 when the mixture pressure is 5 atm, and its...

Classify the following as revenues or expenses assuming Bowen Company uses the accrual basis of accounting: A. Bowen Company provides $ 4,500 in services to a client and sends the client a bill. B....

Poorly trained workers could have an unfavorable effect on which of the following variances?Labor RateVarianceMaterials QuantityVarianceA ) YesYesB ) YesNOC ) NoYesD ) NoNoMultiple CholceChoice...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".