/05GÉZ9¤ÎÑRÁCÁA¨T¨AL¨BE¨V¨AÌBÅÖÙRÉRÖRÆËÊI±AÓAÐÌÆÐB¨@Ad@@@@ @ @***************›* SHARPE 1 *›***************›*@‚*@ƒ@9 ;A,è }òN€-@@@ -" €N ' ÓÈÁÒÐŧӠÍÅÔÈÏÄ ÏÆ ÐÏÒÔÆÏÌÉÏ ÓÅÌÅÃÔÉÏÎó%€-@@@ -" €% ü** "THIS PROGRAM STARTS WITH DATA PER--- %TAINING TO A MARKET INDEX AND SEVERAL++ #POSSIBLE STOCKS TO HOLD. FOR EACH  ++ #STOCK THE USER INPUTS THE ALPHA AND'' BETA PARAMETERS, ALONG WITH THE'' VARIANCE OF RETURN (OR STANDARD** "DEVIATION OF RETURN = VOLATILITY).((  FOR THE INDEX THE EXPECTED VALUE$++ #AND VARIANCE OF RETURN ARE ENTERED.)((  THE PROGRAM THEN CALCULATES THE .** "PROPORTION. A RISK FACTOR MAY ALSO3)) !BE INCLUDED. THIS FACTOR TAKES ON8** "VALUES BETWEEN 0 AND 4 OR 5. THE =.. &HIGHER THE RISK FACTOR THE MORE DARINGB((  THE INVESTOR SHOULD BE. 0 MEANSG VERY CONSERVATIVEH I" PRESS RETURN TO BEGIN"°DATA INPUT›± CLR›µ }ºU AG 4NUMBER OF STOCKS BEING CONSIDERED FOR PORTFOLIO K‚U B¿ ÄJ A5G 5ENTER 1 IF STOCK VARIANCE OF RETURN IS BEING ENTEREDJ ÎVH ?ENTER 0 IF STOCK STANDARD DEVIATION OF RETURN IS BEING ENTEREDLƒV BÏ A@Ó@  A52 INPUT ERROR, PLEASE TRY AGAIN6ƒ@ BØ#ƒ*ƒ@# A5â<6„-‚%@6…-‚%@<# ROWS & COLUMNS ON MATRIX›çT AWJ†9‚%@<‚%@,‡9‚%@<@,ˆ9‚,‰9‚,Š9‚,T Bé }êB˜-@‚ 6ˆ8˜,-/6‰8˜,->6Š8˜,-B ˜ë_˜-@‚%@/™-@‚%@@6†8˜<™,-W6‡8˜<@,-[ ™_ ˜ì€-@‚ñƒ"@A€ö4 }1  FOR STOCK € ENTER THE FOLLOWING4 ÷< Aq"  ALPHA &‹/6ˆ8€,-‹2 < Bø< Ar"  BETA &Œ/6‰8€,-Œ2 < Bù< Ar"  STD. DEV. &/6Š8€,-2 < Bý ANEXT I›4 }1  FOR STOCK € ENTER THE FOLLOWING4 < A"  ALPHA &‹/6ˆ8€,-‹2 < B< A‚"  BETA &Œ/6‰8€,-Œ2 < B< Aƒ"  VARIANCE &/6Š8€,-2 < B6Š8€,-6@$Š8€,  A € }. A  INDEX RETURN $. B : A, INDEX VARIANCE OF RETURN 0: B (3 A % ENTER RISK FACTOR )‘3 B, }-?-@? %ªªªªªªªªªªªªªª COMPUTING ªªªªªªªªªªªª2#€-@‚6†8€<€,-Š8€,# €<G€-@‚*6†8‚%@<€,-@C6†8€<‚%@,-@G €Fk'6†8‚%@<‚%@,-6@$I6†8‚%@<‚%@,-6@k6†8‚%@<‚%@,-6@PA€-@‚'6†8‚%@<€,-‰8€,=6†8€<‚%@,-‰8€,A €Zw€-@‚06‡8€<@,-6@$‘$ˆ8€,4 €X6‡8‚%@<@,-6@$‘$w6‡8‚%@<@,-@¬NOW INVERTING MATRIX A›¶“-@…À €-“„Ê 6”-€Ô†8€<“,A#Þ €è// 'NO UNIQUE SOLUTION,MATRIX A IS SINGULARòü’-@„ )6•-†8“<’,6†8“<’,-†8”<’,)6†8”<’,-•  ’ A6•-‡8“<@,06‡8“<@,-‡8”<@,A6‡8”<@,-•$ 6–-@'†8“<“,. ’-@„8 6†8“<’,-–$†8“<’,B  ’L !!6‡8“<@,-–$‡8“<@,V —-@„` —"“A$`j 6–-6@$†8—<“,t ’-@„~ 6†8—<’,-†8—<’,%–$†8“<’,ˆ  ’’ ..6‡8—<@,-‡8—<@,%–$‡8“<@,œ  —¦  “«  }-@° ""  SOLUTION FOLLOWSº  Ä €-@‚Î 22 PROPORTION FOR STOCK € = ‡8€<@,Ø   €ì  ö 2. %PRESS RETURN FOR ANOTHER COMPUTATION 2 A€ D2:SHARPE1