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There are no questions. This is an excel calculation work.

There is a sheet in the KMV file named Solution.

The homework is to complete that table. In doing so, the Constellation Quarterly, Equity data and the 1 year Treasury data are to be used to calculate for return, sigma, etc.

Basically, new sheets (CRSP, Analysis, Minimization, Default of Probability) are to be created using this data for the various quarters of 2000 and 2001. Solver is to be used to calculate for the volatility.

I also attached a file named VEN Soln. This is a sample solution to be a guideline as to what I am looking for. No data from the VEN should be used. It is just a sample solution.

Attachment:- Project Note.rar

Statistics and Probability, Statistics

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