Please answer the questions below utilizing the Accounting workbook attached. Qu

Please answer the questions below utilizing the Accounting workbook attached.
Qu

Please answer the questions below utilizing the Accounting workbook attached.
Question:
1. Based on the regression equation, if the return on Apple is 10%, what is the expected return on
Kellogg? Show calculations.
2. In the Data Table in cells A16:C37, can the proportion invested in Apple exceed 1 in practice,
for the two-stock portfolio? How?
3. From the Data Table in cells A16:C37, what are the mean return and sigma of the least risky
portfolio? What are the proportions invested in Apple and Kellogg for this portfolio?
4. Fully define the following terms: Envelope Portfolio, Envelope, Efficient Portfolio, Efficient
Frontier.
5. Briefly describe and explain the method used to calculate the Variance of Portfolio Y in cell
E16.
6. Briefly describe and explain the method used to calculate the Covariance of portfolios X and
Y in cell B18.
7. Based on the embedded chart in cells D30:G47, explain why x and y cannot be efficient
portfolios.