Chapter_11_HWK

# Chapter_11_HWK - Product 0.0000 0.0000 0.0000 Variance =...

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Chapter 11 Problems 4, 6, 17, 18 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."

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Chapter 11 Question 4 Input area: Portfolio value \$25 Stock X E(R) 20.00% Stock Y E(R) 15.00% Portfolio E(R) 40.00% Output area: Weight of Stock X 5.0000 Weight of Stock Y (4.0000) Dollar in Stock X \$125.00 Dollars in Stock Y \$(100.00)

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Chapter 11 Question 6 Input area: State Probability Stock A Stock B Recession Normal Boom 1.00 Output area: Stock A Probability Return Product Recession 0.00 0.00 0.0000 Normal 0.00 0.00 0.0000 Boom 1.00 0.00 0.0000 E(R) = 0.0000 Standard Deviation 0.00% Stock B Probability Return Product Recession 0.00 0.00 0.0000 Normal 0.00 0.00 0.0000 Boom 1.00 0.00 0.0000 E(R) = 0.0000 Standard Deviation 0.00%
Product 0.0000 - 0 0.0000 - 0 0.0000 - 0 Variance =

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Unformatted text preview: - Product 0.0000 - 0.0000 - 0.0000 - Variance = - Return Deviation Squared Deviation Return Deviation Squared Deviation Chapter 11 Question 17 Input area: Stock beta Stock E(R) Risk-free return a. Weight of stock b. Portfolio beta c. Portfolio E(R) d. Portfolio beta Output area: a. Portfolio E(R) 0.00% b. Weight of stock #DIV/0! Weight of risk-free #DIV/0! c. Weight of stock #DIV/0! Portfolio beta #DIV/0! d. Weight of stock #DIV/0! Weight of risk-free #DIV/0! The portfolio is invested #DIV/0! in the stock and #DIV/0! in the risk-free asset. This represents borrowing at the risk-free rate to buy more of the stock. Chapter 11 Question 18 Input area: Stock E(R) Stock beta Risk-free return Output area: Slope of SML #DIV/0! Weight of W Portfolio E(R) Portfolio beta 0.00% 0.00% 0.000 25.00% 0.00% 0.000 50.00% 0.00% 0.000 75.00% 0.00% 0.000 100.00% 0.00% 0.000 125.00% 0.00% 0.000 150.00% 0.00% 0.000...
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Chapter_11_HWK - Product 0.0000 0.0000 0.0000 Variance =...

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