Unformatted text preview: mess. (Assume no short selling is allowed) What is the Expected Return and Variance for the minimum variance portfolio? Hint: You will need to use the Solver which works in a similar way to Goal Seek. Additionally, you will need the formulas in the asset valuation lecture and figure out how they change when you have three securities instead of two. 4) In worksheet 4, I list a series of cash flows. Assume a discount rate equal to 4%. What is the most you would pay for these cash flows at the end of Year 1? Year 3? Year 7? If you pay $4,000 at the beginning of Year 1 (end of Year 0 if you like…), what is the yield to maturity? Copy/paste your output from Excel. The more information you can show (coherently) the better....
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- Spring '08
- Capital Asset Pricing Model, Probability theory, English-language films, Equals sign