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1) Rate of Return
Year   Asset A    Asset B   Market Index
1        8.0%       19.0%       9.0%
2      -11.0%      12.0%     14.0%
3       18.0%      19.0%       4.0%
4       -2.0%     -14.0%      -4.0%
5       12.0%      13.0%      17.0%

i) Compute Average Rate of Return on two Assets and = Market Index (Use the =Average function)

ii) Determine the Standard Deviation of Returns for two Assets and = Market Index? (Use the =STDEV function)

ii) Determine Correlation of Returns for Asset A and B, Asset A with Market Index and Asset B with the Market Index? (Use the =correl function)

iv) Compute Expected Return and Standard Deviation of Returns for Porfolios with given composition:

% Asset A                % Asset B
Expected Return   Std Dev of Returns
     0                       100%
   25%                     75%
   50%                     50%
   75%                     25%
  100%                     0%

v) Design a curve for Feasable Set of Portfolio outcomes by using data from (iv) with Portfolio Std Dev on X-Axis and Portfolio Expected Returns on the Y-Axis
(Use Insert and then Scatter Plot under the Chart functions)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914202

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