Homework Answers
| Ans a (1) | Mean of the Portfolio= Portfolio Value at the Beginning * Mean return % | 80*5% | 4.00 |
| Ans a (2) | Standard Deviation of the Portfolio= Portfolio Value at the Beginning * Standard Debiation % | 80*5% | 4.00 |
| Ans b (1) | Probabilty of Loss of Portfolio is more than 10 Mn | 0.0233% | |
| X | -10 | ||
| Mean | 4 | ||
| Standard Deviation | 4 | ||
| NORM.DIST(-10,4,4,TRUE) | 0.0233% | ||
| Ans b (2) | Probabilty of Loss of Portfolio is more than 20 Mn | ||
| X | -20 | ||
| Mean | 4 | ||
| Standard Deviation | 4 | ||
| NORM.DIST(-10,4,4,TRUE) | 0.0000% | ||
| Difference Between Loss being more than 10 Mn and Loss being 20 Mn | 0.0233%-.0000% | 0.0233% | |
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