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S.

No

Msft
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46

32.72
33.1
28.61
27.8
27.22
26.49
26.4
28.07
29.28
30.32
28.8
29.89
28.53
31.09
31.32
30.82
28.48
25.04
24.67
25.49
23.83
25.46
26.07
24.73
23.79
24.5
24
25.12
26.05
26.22
23.73
24.9
22.87
21.92
23.97
21.37
23.96
28.24
27.08
26.51
25.94
28.05
27.07
25.41
23.57
22.59

Return
Google
-0.01155
820.43
0.145777
824.57
0.02872
794.19
0.021084
801.2
0.027185
755.69
0.003403
707.38
-0.06134
698.37
-0.0422
680.3
-0.0349
754.5
0.051432
685.09
-0.03715
632.97
0.046568
580.07
-0.08593
580.86
-0.00737
604.85
0.016093
641.24
0.078962
618.25
0.128728
580.11
0.014887
645.9
-0.0327
599.39
0.067341
592.64
-0.06616
515.04
-0.02368
540.96
0.052768
603.69
0.038752
506.38
-0.02941
529.02
0.020619
544.1
-0.04561
586.76
-0.03635
613.4
-0.0065
600.36
0.099782
593.97
-0.04813
555.71
0.085042
613.7
0.042427
525.79
-0.0894
450.02
0.114815
484.85
-0.1144
444.95
-0.16435
485.63
0.041944
525.7
0.021273
567.12
0.021736
526.8
-0.0782
529.94
0.035563
619.98
0.063283
583
0.075168
536.12
0.042467
495.85
0.052716
461.67

Return
Intel
Return
IBM
-0.00503
23.99 0.001669
199.63
0.037539
23.95 0.092225
202.54
-0.00879
21.84 0.044951
213.3
0.058479
20.88 0.002878
200.83
0.066063
20.82 0.020379
202.22
0.012819
20.4 0.052326
190.75
0.026215
19.36 -0.08985
189.27
-0.10352
21.18 -0.04658
192.87
0.096505
22.19 -0.09166
205.68
0.079127
24.32 -0.02557
193.19
0.087274
24.95 -0.03621
193.48
-0.00136
25.87 0.031013
193.09
-0.04047
25.08 -0.08738
190.44
-0.05842
27.37 0.009914
203.59
0.036511
27.1 0.044905
205.13
0.063675
25.91 0.025407
193.41
-0.10743
25.26 0.085501
188.62
0.074732
23.19
-0.0268
180.08
0.011325
23.82 0.02379
184.11
0.140343
23.26 0.140063
180.09
-0.0491
20.22 0.058032
170.57
-0.10972
19.08 -0.09398
167.68
0.175773
20.96 0.007663
176.61
-0.04374
20.8 -0.01574
166.6
-0.02811
21.13 -0.02015
164.06
-0.07548
21.56 0.137515
164.92
-0.0444
18.79 -0.06191
157.66
0.021488
19.99 0.008541
156.51
0.010701
19.82 0.020388
156.01
0.066582
19.42 -0.00616
141.34
-0.09926
19.54 0.061745
136.23
0.154604
18.37 0.043388
137.68
0.15561
17.59 0.082937
128.61
-0.07455
16.19 -0.14573
118.05
0.085878
18.73 0.057127
122.5
-0.08749
17.69 -0.09639
117.81
-0.07928
19.48 -0.05687
119.5
-0.07584
20.62 0.02405
122.44
0.07375
20.13 0.082281
121.73
-0.00594
18.54 0.06461
120.7
-0.15692
17.38 -0.04994
115.65
0.0615
18.27 0.060351
123.69
0.083829
17.2 0.012284
119.4
0.078085
16.99 -0.02385
113.46
0.071423
17.4 -0.03723
112.52
0.041168
18.06 0.061075
111.05

47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
Avg Monthly Return
Avg Monthly Variance
MeanAnnual Return
Avg Monthly SD
Avg Annual SD
Avg Annual Variance

21.43
21.66
19.04
18.34
16.63
14.62
15.38
17.48
18.18
19.95
23.84
24.38
22.88
24.48
25.2
25.28

-0.01068
0.128925
0.037458
0.097876
0.128818
-0.05068
-0.12799
-0.03926
-0.09291
-0.17814
-0.0224
0.0635
-0.06759
-0.02899
-0.00317
#DIV/0!
0.004229
0.005042
0.050749
0.071007

443.05
421.59
417.23
395.97
348.06
337.99
338.53
307.65
292.96
359.36
400.52
463.29
473.75
526.42
585.8
574.29

0.049649
0.010396
0.052299
0.128964
0.029359
-0.0016
0.09565
0.048927
-0.20429
-0.10844
-0.14559
-0.02233
-0.10542
-0.10688
0.019844
#DIV/0!
0.005847
0.006999
0.070169
0.083661

16.99
14.61
13.87
13.81
13.15
11.15
11.17
12.7
11.95
13.77
16.08
19.64
18.94
18.33
19.78
18.88

0.150919
0.051978
0.004335
0.048971
0.164982
-0.00179
-0.12837
0.060871
-0.14176
-0.15508
-0.19999
0.036292
0.032737
-0.07613
0.046568
#DIV/0!
0.003927
0.005771
0.047121
0.075964

110.43
97.78
99.52
96.14
90.25
85.73
84.91
77.97
75.6
85.65
107.76
112.15
117.45
108.78
118.78
110.32

Return
S&P
-0.01447 6934.98
-0.05176 7008.95
0.060241 6885.83
-0.0069 6647.48
0.058393 6584.65
0.007789 6210.76
-0.01884 6166.45
-0.06431 6190.99
0.062647 6268.08
-0.0015 6068.42
0.002018
6036.2
0.013819 5941.46
-0.06677 5694.98
-0.00754 6058.87
0.058832 6107.74
0.025078 5942.06
0.046333 5752.88
-0.02213 5584.42
0.022077 5491.13
0.054311 5478.73
0.017088 4978.55
-0.05189 5378.98
0.058348 5696.69
0.015364 5846.42
-0.00523 5946.39
0.04502 6061.59
0.007321 5902.84
0.0032 5906.53
0.098752 5728.31
0.036824 5599.23
-0.01059 5237.23
0.068148
5243.8
0.085676 5102.24
-0.037 4752.67
0.039038 4962.18
-0.01424 4646.38
-0.0243 4882.38
0.005816 5340.03
0.008497 5318.94
0.04274 5056.58
-0.06721 4959.38
0.035299 5095.73
0.051029 5105.54
0.008319 4812.24
0.01315 4881.96
0.005599
4760.4

Return
-0.01061
0.017722
0.035228
0.009497
0.058458
0.00716
-0.00397
-0.01238
0.032372
0.005324
0.01582
0.04237
-0.06194
-0.00803
0.027501
0.032355
0.02972
0.016847
0.002261
0.095735
-0.07736
-0.05739
-0.02594
-0.01695
-0.01919
0.026539
-0.00062
0.030638
0.022791
0.066836
-0.00125
0.027367
0.070973
-0.04314
0.065757
-0.04954
-0.0896
0.003957
0.050584
0.01941
-0.02712
-0.00192
0.059164
-0.01438
0.025215
0.030415

0.121662
-0.01764
0.034553
0.063222
0.051381
0.009611
0.085268
0.030868
-0.12481
-0.22964
-0.03993
-0.04618
0.076685
-0.08795
0.073888
#DIV/0!
0.009723
0.003215
0.116672
0.056705

4617.79
4335.99
4361.8
4112.13
3875.25
3604.33
4092.17
4500.53
4513.64
4787.99
5647.88
6081.81
6021.64
6064.19
6635.22
6673.16

0.062966
-0.00593
0.058944
0.059331
0.072474
-0.12694
-0.09512
-0.00291
-0.05901
-0.16517
-0.07402
0.009943
-0.00704
-0.08999
-0.0057
#DIV/0!
0.000631
0.002609
0.007571
0.051074

Stcok A
Stock B
Correlation
Weight of A
Weight of B
Return on Portfoloi
Risk(Variance of Portfolio)
SD

Stcok A
Stock B
Correlation
Weight of A
Weight of B
Return on Portfoloi
Risk(Variance of Portfolio)
SD

Risk variance (2)


SD()
Return
15%
30%
6%
12%
0.5

0.547722558
0.346410162

0.5
0.5
{=MMULT(TRANSPOSE(B6:B7,B2:B3)}
{=MMULT(TRANSPOSE(C6:C7),C2:C3)}

0.105

0.152434
0.390428

Risk variance (2)


SD()
Return
15%
30%
6%
12%
0.5

0.547722558
0.346410162

0.095
0.905
{=MMULT(TRANSPOSE(B6:B7,B2:B3)}
{=MMULT(TRANSPOSE(C6:C7),C2:C3)}
0.117303
0.342495

0.06855

0.105

Use goal seek function to put standard deviation to zero


select cell of return on portfolio
set cell
SD
to value
0
by changing cell
weight A

Return

Risk vriance

Stock A
Stock B
Correlation

15%
6%

Weight of A
Weight of B

0.5
0.5

Return on Portfolio
Risk(Variance of Portfolio)
SD

0.387425887 wkt Wa= (b/a+b)-CHECK

0.105

0.01013167
0.100656198

Risk vriance

Stock A
Stock B
Correlation

15%
6%

Weight of A
Weight of B

0.387425887
0.612574113

Risk(Variance of Portfolio)
SD

0.547722558
0.346410162

{=MMULT(TRANSPOSE(B6:B7,B2:B3)}
{=MMULT(TRANSPOSE(C6:C7),C2:C3)}

Return

Return on Portfolio

SD
30%
12%
-1

SD
30%
12%
-1

0.547722558
0.346410162

0.387425887 wkt Wa= (b/a+b)-CHECK

{=MMULT(TRANSPOSE(B6:B7,B2:B3)}
{=MMULT(TRANSPOSE(C6:C7),C2:C3)} 0.09486833
0
0

Use Goal seek to recompute weights for zero sd

Stcok A
Stock B
Correlation
Weight of A
Weight of B
Return on Portfoloi

Return
Risk variance
SD
15%
30%
6%
12%
0.5

0.547772256
0.346410162

0.5
0.5
{=MMULT(TRANSPOSE(B6:B7,B2:B3)}
{=MMULT(TRANSPOSE(C6:C7),C2:C3)}
0.105

Risk(Variance of Portfolio)0.152434
SD
0.390428

What if Analysis---Data Table-Select entire table along with first row


Row input cell- blank
colum input cell- weight A
Table automatically populates
Insert Scatter plot
Remove series one
select risk on x from weight=-1
select return on y from weight=-1

1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2

Weight in A Retur on Portfoloio Risk of portrfolio SD


0.5
0.105 0.390428
-1
-0.9
-0.8
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2

Stcok A
Stock B
Correlation
Weight of A
Weight of B
Return on Portfoloi

Return
Risk vrianceSD
15%
30%
6%
12%
0.5

0.547772256
0.346410162

0.5
0.5
{=MMULT(TRANSPOSE(B6:B7,B2:B3)}
{=MMULT(TRANSPOSE(C6:C7),C2:C3)}
0.105

Risk(Variance of Portfolio) 0.152434


SD
0.390428

Weight in A
0.5
-1
-0.9
-0.8
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2

Risk Return
Retur on Portfoloio
0.105
-0.03
-0.021
-0.012
-0.003
0.006
0.015
0.024
0.033
0.042
0.051
0.06
0.069
0.078
0.087
0.096
0.105
0.114
0.123
0.132
0.141
0.15
0.159
0.168
0.177
0.186
0.195
0.204
0.213
0.222
0.231
0.24

Risk of portrfolio SD
0.390428
0.632872
0.593085
0.554598
0.5177
0.482755
0.450219
0.420651
0.394719
0.37318
0.356832
0.34641
0.342456
0.345193
0.354464
0.369779
0.390428
0.415616
0.444572
0.476611
0.511152
0.547723
0.585943
0.62551
0.666185
0.707776
0.750132
0.793128
0.836668
0.88067
0.925068
0.969808

0.3
0.25
0.2
0.15
0.1
0.05
0
-0.05

0.2

0.4

0.6

0.8

Return

Risk Return

1.2

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