Clipboard ГУ Font Ty Alignment B7 Xfx v A ГУ Number K] B C 1 Based on the data shown to the right, weights from a Markowitz solution that 2 are already calcualted for you based on the expected semi-annual return 3 shown below, calculate the variance and standard deviation for the portfolio. 4 Expected semi-annual return = 10.1830% 5 6 7 8 9 10 11 12 13 14 15 16 17 Please show all of your work in this Excel Worksheet. 18 19 20 21 22 23 24 25 Formatting Table Styles く Format v Filter Select Data Styles Cells Editing Add-ins D E F Summary Statistics Table G H New Group Average Daily Rate Return Std. Dev. Stock A 0.002101722 Stock B 0.010116823 Stock C -0.000230729 Stock D -0.000423859 Stock E -0.003786326 Variance a) Variance = Semi-annual Avg Return Semi-annual Std Dev 0.024753119 0.000612717 0.004769343 0.000144105 0.001199478 0.264817035 1.274719707 -0.029071831 -0.05340624 0.277853072 0.77520139 0.134748888 0.3887598 0.069060429 0.012004385 0.034633476 0.029093713 0.000846444 -0.477077035 0.32657612 Covariance Matrix Stock A b) StDev= Stock B Stock C Stock D Stock E Stock A 0.000595697 Stock B 0.000896456 Stock C Stock D 0.000206176 0.000396944 0.000896456 0.004636861 0.00046795 0.001169207 0.000206176 0.00046795 0.000140102 0.000396944 0.001169207 0.000198863 0.000296867 0.001046777 0.000149676 Stock E 0.000296867 0.001046777 0.000198863 0.000149676 0.001166159 0.00021667 0.00021667 0.000822932 Portfolio Weights Weight w1 0.044467 w2 0.025427 w3 1.207212 w4 -0.093144 w5 -0.183962
Clipboard ГУ Font Ty Alignment B7 Xfx v A ГУ Number K] B C 1 Based on the data shown to the right, weights from a Markowitz solution that 2 are already calcualted for you based on the expected semi-annual return 3 shown below, calculate the variance and standard deviation for the portfolio. 4 Expected semi-annual return = 10.1830% 5 6 7 8 9 10 11 12 13 14 15 16 17 Please show all of your work in this Excel Worksheet. 18 19 20 21 22 23 24 25 Formatting Table Styles く Format v Filter Select Data Styles Cells Editing Add-ins D E F Summary Statistics Table G H New Group Average Daily Rate Return Std. Dev. Stock A 0.002101722 Stock B 0.010116823 Stock C -0.000230729 Stock D -0.000423859 Stock E -0.003786326 Variance a) Variance = Semi-annual Avg Return Semi-annual Std Dev 0.024753119 0.000612717 0.004769343 0.000144105 0.001199478 0.264817035 1.274719707 -0.029071831 -0.05340624 0.277853072 0.77520139 0.134748888 0.3887598 0.069060429 0.012004385 0.034633476 0.029093713 0.000846444 -0.477077035 0.32657612 Covariance Matrix Stock A b) StDev= Stock B Stock C Stock D Stock E Stock A 0.000595697 Stock B 0.000896456 Stock C Stock D 0.000206176 0.000396944 0.000896456 0.004636861 0.00046795 0.001169207 0.000206176 0.00046795 0.000140102 0.000396944 0.001169207 0.000198863 0.000296867 0.001046777 0.000149676 Stock E 0.000296867 0.001046777 0.000198863 0.000149676 0.001166159 0.00021667 0.00021667 0.000822932 Portfolio Weights Weight w1 0.044467 w2 0.025427 w3 1.207212 w4 -0.093144 w5 -0.183962
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Don't use AI.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education