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This assignment is to be done in Excel. You are interested in forming a portfolio with Stock S and Bond B. Stock S has an expected return of 14% and a standard deviation of returns of 30%. Bond B has an expected return of 8% and a standard deviation of returns of 15%. The correlation coefficient of the returns of S and B is 0.22. The risk-free rate of return is 5%. Using increments of 1 percentage point, fill in the template posted and plot both efficient frontiers (with vs. without the risk-free asset.) When plotting the line for the frontier with the risk-free asset, use a range from 0 to 30 for the X values. Please do not forget the important reminders below.1. The weight in the bond (Wb) for the minimum-variance portfolio needs to be inserted numerically within the Wb column. 2. The weight in the bond (Wb) for the maximum-Sharpe-Ratio portfolio does not need to be inserted numerically in the Wb column, but you can do so if you would like.

1 EIR] T- EIRh) 34 Stock Chand 30 w formie w porno Corres 15 0.22 M wb for optimal Sharpe Ratio 5 numero denominator Anwwer PROGRAM PROGRAM PROGRAM. 2 Terme Term 2 Term Total PUT PROGRAM PROGRAM PROGRAM denominator: PROGRAM. PROGRAM PROGRAM PROGRAM A PROGRAM WS Eirp) wb -02 -0.2 (wdk2 68 waida wwwhdas Vals 12 1.2 Line goes through two ports (0) and y coordinates of we know that optimalik 10. Tad Now Now construct EF portfolose. need to find portfolio where highest Sharpe with highest Sharpe This is our asset ist. rol rable Sharpe Man Share Rio Rate PROGRAM 8 1 8 Find points online 9 ADOROWS AS NEEDED 0.3 0.9 03 0.3 0. 11 12 3.0 9.2 98 yumb O PROGRAM I PROGRAM 2. PROGRAM IN COLUMN IN COLUMN AS NEEDED. AS NEEDED 93 0.4 0.5 06 0.7 08 D. 1 1.3 1.2 Dub DLS 04 0.1 02 10A 11 136 122 128 25 18 2 10 19 20 21 22 23 34 25 14 -0.3 -02 152 1 EIR] T- EIRh) 34 Stock Chand 30 w formie w porno Corres 15 0.22 M wb for optimal Sharpe Ratio 5 numero denominator Anwwer PROGRAM PROGRAM PROGRAM. 2 Terme Term 2 Term Total PUT PROGRAM PROGRAM PROGRAM denominator: PROGRAM. PROGRAM PROGRAM PROGRAM A PROGRAM WS Eirp) wb -02 -0.2 (wdk2 68 waida wwwhdas Vals 12 1.2 Line goes through two ports (0) and y coordinates of we know that optimalik 10. Tad Now Now construct EF portfolose. need to find portfolio where highest Sharpe with highest Sharpe This is our asset ist. rol rable Sharpe Man Share Rio Rate PROGRAM 8 1 8 Find points online 9 ADOROWS AS NEEDED 0.3 0.9 03 0.3 0. 11 12 3.0 9.2 98 yumb O PROGRAM I PROGRAM 2. PROGRAM IN COLUMN IN COLUMN AS NEEDED. AS NEEDED 93 0.4 0.5 06 0.7 08 D. 1 1.3 1.2 Dub DLS 04 0.1 02 10A 11 136 122 128 25 18 2 10 19 20 21 22 23 34 25 14 -0.3 -02 152

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