MMULT function which is used in the cells of this excel sheet is used to describe the syntax

formula; this function is used to return the matrix product of 2 arrays. The outcome is the array
with similar number of rows and identical number of columns in array 2. The syntax used for the
MMULT function is
MMULT (array1, array2)
The conditions specified here are that the numbers of columns in array1 have to same as the
number of rows in the array 2. Both of the rows could be array constants, cell ranges and
references. The formula in the example should be entered as the array formula.
In the cell AP9 which is the S matrix, in this case the formula is used
=MMULT(TRANSPOSE(W3:AN350),W3:AN350)/347, which shows that function is used for
cell W3 to AN350 which is the function of mt, ut1, ut2..Zt ut 9. This is the
main formula which is used in the excel sheet, the others are normal addition and multiplication
functions as in cell AH3.
If any of the cells in the sheet have non-numeric or empty values, the function of MMULT
would get back to #value error.
Another is the CAPM model formula which is return of the asset= risk free rate+ Beta (risk of
market portfolio- risk free rate). This formula is used to calculate the return of the various returns
of different countries. This is the model which studies the relation between the expected return
and risk of the securities. The time value of currency is depicted by the risk-free (rf) rate in the
formula and reimburse the shareholders for placing currency in any asset over a stage of time.
The second half of the formula depicts risk and evaluates the quantity of reimbursement the
shareholder needs for captivating on added risk.