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Market portfolios: expected return, risk free rate, standard deviation, forward contract

See the attached file.

Consider the following five problems:
a. Problem 10.31
b. Problem 10.38
c. Problem 10.6
d. Problem 25.4
e. Problem 10.32

Select any three and solve them. In addition to solving these problems, explain the financial impact of the solution or explain how a financial manager would interpret the solution. Please submit your work in Microsoft Excel, using the math and finance functions so that your calculations can be seen in the cell background. If you choose to use Microsoft Word, you must show all of your formulas or calculator keystrokes.

For the remaining two problems, answer the following questions:

a. What financial concept or principle is the problem asking you to solve?
b. In the context of the problem scenario, what are some business decisions that a manager would be able to make after solving the problem?
c. Is there any additional information missing from the problem that would enhance the decision-making process?
d. Without showing mathematical calculations, explain in writing how you would solve the problem.

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Solution Summary

In an Excel worksheet, the questions are thoroughly answered with discussion as well as calculations for better understanding.