Solved by verified expert :Corporate Finance Risk and return problemSpreadsheet problem based on chapters 10-11 (Risk-Return)You
are managing the Duemani Investment fund, a fund which invests only in
two mutual funds: Fund Domo (D) and Fund Estero (E). Fund D (Domo) has
an expected rate of return of 12% and a standard deviation of returns of
20%. Fund E (Estero) has an expected rate of return of 4% and a
standard deviation of returns of 9%.a) Calculate the attainable
set of portfolios by calculating risk and expected return of the Duemani
Investment Fund based on the following weights for D and E:Correlation: r(D,E) = +1Show
the numerical results in an excel-chart (risk and return numbers in %, 2
decimal places). The preferred type of diagram for this problem is a
so-called “XY (scatter)-chart with data points connected by smoothed
lines”.b) Same as a), but correlation r(D,E) = + 0.75c) Same as a), but correlation r(D,E) = + 0.5d) Same as a), but correlation r(D,E) = + 0.25e) Same as a), but correlation r(D,E) = 0f) Same as a), but correlation r(D,E) = – 0.25g) Same as a), but correlation r(D,E) = – 0.5h) Same as a), but correlation r(D,E) = – 0.75i) Same as a), but correlation r(D,E) = – 1j) Additional problem, if correlation r(D,E) = -1:Use
the “goal seek”-function in excel to find the % to be invested in D and
E so that the portfolio standard deviation = 0. What will the expected
portfolio return be in this case? Show the weights for D and E in %, 2
decimal places.Minimum requirements:- Show the 9 different
attainable sets of risk/return combinations [i.e. a) – i) ], and the
results for j), including all the required numbers and the corresponding
chart.Project assignment:- Create a one-page spreadsheet solution that includes all the required parameters
