Compute the expected return and standard deviation

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Assignment

Aims of project
In fulfillment of the Course Learning Outcome 2, each student should use spreadsheet softwareto analyze financial data and compute return and risk measures of financial securities in a complex environment. This assignment will enhance the analytical financial skills for the students.

Tasks
By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? The total amount you invested in the portfolio is $95,000, where $33,000 of this amount of money is invested in stock A and $20,000 is invested in stock B, the rest were invested in stock C.

State of Economy

Probability of state of Economy

Return if state Occurs

Stock A

Stock B

Stock C

Boom

10%

17%

6%

22%

Normal

30%

8%

10%

15%

Recession

60%

-3%

19%

-25%

Important Notes:

1. You must show all steps in finding the Standard Deviation.
2. Use the function tool available in Excel.
3. Submission of the assignment should be through the provided link on the Blackboard.

Verified Expert

In the given assignment, By using the excel spreadsheet, the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C are calculated with reference to the TOPIC 13:Return, Risk, and the Security Market Line FROM :Fundamentals of Corporate Finance, Ross, 12e

Reference no: EM132231674

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len2231674

2/11/2019 1:40:32 AM

By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? TOPIC 13 : Return, Risk, and the Security Market Line FROM : Fundamentals of Corporate Finance, Ross, 12e

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