An investor is developing a portfolio of stocks. She has identified 3 stocks to invest in. She wants to earn at least 5% return but with minimum risk. The problem data is given in the following Excel spreadsheet. What formula should be entered in cell G4 of the Excel spreadsheet?
A)=COVAR(B4:B13)
B)=VARP(B4:B13)
C)=COVAR(B4:D13,$D$4:$B$13)
D)=COVAR(B4:B13,$B$4:$B$13)

Question

An investor is developing a portfolio of stocks. She has identified 3 stocks to invest in. She wants to earn at least 5% return but with minimum risk. The problem data is given in the following Excel spreadsheet. What formula should be entered in cell G4 of the Excel spreadsheet?  
A)=COVAR(B4:B13) 
B)=VARP(B4:B13) 
C)=COVAR(B4:D13,$D$4:$B$13) 
D)=COVAR(B4:B13,$B$4:$B$13)

Quizplus · Accepted Answer

The Answer of An investor is developing a portfolio of stocks. She has identified 3 stocks to invest in. She wants to earn at least 5% return but with minimum risk. The problem data is given in the following Excel spreadsheet. What formula should be entered in cell G4 of the Excel spreadsheet?  
A)=COVAR(B4:B13) 
B)=VARP(B4:B13) 
C)=COVAR(B4:D13,$D$4:$B$13) 
D)=COVAR(B4:B13,$B$4:$B$13)

An Investor Is Developing a Portfolio of Stocks