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Compute the weights-expected return-standard deviation

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You are trying to form portfolios based on the following information about Stocks A,B,C and D Expected Return of Stock A = 5%; Stock B = 8%; Stock C = 15%; Stock D = 21%

The Standard Deviation of Stock A = 12%; Stock B = 18%; Stock C = 32%; Stock D = 40%

The Correlation between A,B = - 0.05; A,C = 0.10, A,D = 0.07; B,C = 0.20; B,D = 0.50; C,D = 0.35

The Risk Free Rate is 4.0%

Question 6,7,8, and 9: Compute the Weights, Expected Return, Standard Deviation and Sharpe Ratio of the Market (Optimal) portfolio using the Excel solver function.

Reference no: EM133069389

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