Assignment:
Security A Security B
Pa Ra Pb Rb
0.1 -10% 0.1 -30%
0.2 5% 0.2 0
0.4 15% 0.4 20
0.2 25 % 0.2 40
0.1 40% 0.1 70
ra=? rb= 20.0%
standard deviation=? standard deviation= 25.7%
Q1. The expected return for security rb= 20% and standard deviation- 25.7%. Find expected return and standard deviation for security A
Q2. Find the value of wa that produces the minimum risk portfolio. Assume pab= -0.5 for parts b and c
Q3. Construct a table giving expected returns and standard deviations for portfolios with wa= 1.00, 0.75, 0.50, 0.25, 0.0 and the minimum risk value of A.
Q4. Graph the feasible set of portfolios and identify the efficient frontier of the feasible set.
Can you please provide the answers on an excel sheet using the formulas that are needed to answer these questions.