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Unformatted text preview: Chapter 13 Problems 128 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 AddIn" be installed in Excel. To install these, click on the Office button then "Excel Options," "AddIns" and select "Go." Check "Analyis ToolPak" and "Solver AddIn," then click "OK." Chapter 13 Question 1 Input area: Shares of A 180 Share price of A $45.00 Shares of B 140 Share price of B $27.00 Output area: Portfolio value $11,880 Weight of A 0.6818 Weight of B 0.3182 Chapter 13 Question 2 Input area: Stock A value $2,950 Stock B value $3,700 Stock A E(R) 11.00% Stock B E(R) 15.00% Output area: Portfolio value $6,650 Weight of A 0.4436 Weight of B 0.5564 Portfolio E(R) 13.23% Chapter 13 Question 3 Input area: Weight of X 60.00% Weight of Y 25.00% Weight of Z 15.00% Stock X E(R) 9.00% Stock Y E(R) 17.00% Stock Z E(R) 13.00% Output area: Portfolio E(R) 11.60% Chapter 13 Question 4 Input area: Portfolio value $10,000 Stock X E(R) 14.00% Stock Y E(R) 10.50% Portfolio E(R) 12.40% Output area: Weight of Stock X 0.5429 Weight of Stock Y 0.4571 Dollar in Stock X $5,428.57 Dollars in Stock Y $4,571.43 Chapter 13 Question 5 Input area: State Probability Return Recession 0.250.08 Boom 0.75 0.21 Output area: State Probability Return Product Recession 0.25 (0.08) (0.0200) Boom 0.75 0.21 0.1575 Expected return 0.1375 Chapter 13 Question 6 Input area: State Probability Return Recession 0.20 (0.05) Normal 0.50 0.12 Boom 0.30 0.25 Output area: State Probability Return Product Recession 0.20 (0.05) (0.0100) Nprmal 0.50 0.12 0.0600 Boom 0.30 0.25 0.0750 Expected return 0.1250 Chapter 13 Question 7 Input area: State Probability Stock A Stock B Recession 0.15 0.05 (0.17) Normal 0.65 0.08 0.12 Boom 0.20 0.13 0.29 Output area: Stock A Probability Return Product Product Recession 0.15 0.05 0.0075 (0.0355) 0.00126 0.0001890375 Normal 0.65 0.08 0.0520 (0.0055) 0.00003 1.96625E005 Boom 0.20 0.13 0.0260 0.0445 0.00198 0.00039605 E(R) = 8.55% Variance = 0.00060 Standard Deviation = 2.46% Stock B Probability Return Product Product Recession 0.15 (0.17) (0.0255) (0.2805) 0.07868 0.0118020375 Normal 0.65 0.12 0.0780 0.0095 0.00009 5.86625E005 Boom 0.20 0.29 0.0580 0.1795 0.03222 0.00644405 E(R) = 11.05% Variance = 0.01830 Standard Deviation = 13.53% Return Deviation Squared Deviation Return Deviation Squared Deviation Chapter 13...
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This note was uploaded on 02/12/2012 for the course BT 1003 taught by Professor As during the Spring '11 term at American Jewish University.
 Spring '11
 AS

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