Instructions You can complete this assignment on Excel by following the steps outlined in detail below. I have used the

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answerhappygod
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Instructions You can complete this assignment on Excel by following the steps outlined in detail below. I have used the

Post by answerhappygod »

Instructions
You can complete this assignment on Excel by following the steps
outlined in detail below. I have used the symbols [ ] to designate
what you should enter into Excel. For example if you see [=E3*2] I
want you to type in the equals sign followed by E3, *, and
finishing with 2. Typically you will press enter when you are done
filling in the information.
Calculate the expected rate of return for Franchise A
1B) Calculate the standard deviation for Franchise A
1C) Calculate the Coefficient of Variation for Franchise A
1D) Copy all the work you have done so far to the columns to the
right of the table
1E) Calculate the expected rate of return for Franchise B
1F) Calculate the standard deviation for Franchise B
1G) Calculate the Coefficient of Variation for Franchise B
1H) Calculate the Expected rate of return for Portfolio A
1I) Imagine you are thinking of investing $300M in Stock F with
a rate of return of 9.5. Should you do it?
1J) Calculate the Portfolio Beta for Portfolio A
1K) …and one extra tricky one: Imagine you could sell
stock C and purchase another stock for $220M, what beta would the
replacement asset need to lower the portfolio Beta to exactly 1?
(You do not need to answer this question to get full marks for the
assignment).
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