Question

Consider the following information. Your portfolio is invested 30 percent each in A and C, 40 percent in B. What is the expected return of the portfolio? What is the variance of the portfolor? The standard deviation? Please show me hoe to do this on excel.

INI Dashboard x Chapter 13: Ouestions x S Shutterfly 15x7 Stationery Card x = MGT 495 Core Learning Activity: x + + → Apps C newconnect.mheducation.com/flow/connect.html S Scholastic Book Club Pinterest Teachers Pay Teach. N EASI SCC Hub scc Canvas Yahoo Finance ADM Book & Proctoru Google Docs Other bookmarks Chapter 13: Questions i Seved Help Save & Exit Submit 18 0.5 points State Boom Good Poor Bust Probability 0.10 0.60 0.25 0.05 Stock A 0.35 0.16 (0.01) (0.12) Stock B 0.45 0.10 (0.06) (0.20) Stock C 0.27 0.08 (0.04) (0.09) eBook Print weights 0.30 0.40 0.30 References Complete the following analysis. Do not hard code values in your calculations. Portfolio Return Product Return Deviation Squared Deviation Product State Boom Good Poor Bust E(R) = Variance = Standard Deviation = - Sheet1 ... READY B U -- + 100% < Prev 18 of 20 Next > FH 2:26 PM - 11/20/2019

Answer 1

0.30 0.40 0.30 Weight Rate of Return If State Occurs State of Return weight Economy Boom Good Poor Bust Probability 0.10 0.60 0.25 0.05 Stock A 0.35 0.16 -0.01 -0.12 Stock B 0.45 0.10 -0.06 -0.20 Stock C 0.27 0.08 0.105 0.048 -0.003 -0.036 -0.04 -0.09 0.18 0.04 -0.024 -0.08 Total*probability Total-Expected return EXPECTED d2*probability PORTFOLIO DEVIATIO TOTAL RETURN DEVIATION | N^2 VARIANCE 0.366 0.0366 0.2791 0.077897 0.007789681 0.112 0.0672 0.0251 0.00063 0.000378006 -0.039 -0.00975 -0.1259 0.015851 0.003962703 -0.143 -0.00715 -0.2299 0.052854 0.002642701 0.0869 0.01477309 0.081 0.024 -0.012 -0.027 8.69% Expected return variance standard deviation=(variance^(1/2)) 0.0869 0.01477 (0.01477)^(1/2) 12.15%!