Excel by Example-Microsoft Excel Cookbook for Electronics Engineers
Excel Example 2_Graphs
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Transcript of Excel Example 2_Graphs
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7/29/2019 Excel Example 2_Graphs
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Security
Weights
Standard
Deviation
Expected
Return
Instructions:
Use the data provided here to create an expected return - standard deviation graph. The
instructions below will take you through the individual steps necessary to create the graph.100/0 13.00% 8.00% To create an expected return - standard deviation graph, start by highlighting
95/5 12.31% 8.40% cells B1:C22. Next, click on the "chart wizard" icon or go to "Insert" - "Chart".
90/10 11.71% 8.80%
85/15 11.22% 9.20% Step 1 - from chart types, select XY-scatterplot and from sub-types select the
80/20 10.84% 9.60% second choice which includes data points and a connecting line. Click Next .
75/25 10.59% 10.00% Step 2 - Skip this step by clicking Next .
70/30 10.49% 10.40% Step 3 - Enter a chart title, enter "Standard Deviation" for the x-axis label and
65/35 10.53% 10.80% "Expected Return" for the y-axis label. Click Next .
60/40 10.72% 11.20% Step 4 - Select "As a new sheet" and click Finish .
55/45 11.04% 11.60%
50/50 11.48% 12.00% You can remove the legend - it is unnecessary. There are two ways to do this.45/55 12.04% 12.40% The easiest way is to highlight it with one left click and press "delete". The alternative
40/60 12.69% 12.80% is to right click on the outside white border of the graph. Select Chart Options - Legend.
35/65 13.42% 13.20% Remove the check mark on the "show legend" option.
30/70 14.23% 13.60%
25/75 15.09% 14.00% You should now have a graph that looks like Chart1-A.
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15/85 16.96% 14.80% To add invididual securities to the graph, such as a risk-free security, take the following
10/90 17.94% 15.20% steps. Right click on the outside white border of the graph. Select "Source Data".
5/95 18.96% 15.60% Click the Series tab. Under "Series", click Add. For the x-value, enter the standard
0/100 20.00% 16.00% deviation, such as 0.0 (or refer to the cell containing the standard deviation). For the
y-value, enter the expected return, such as 0.05 (or refer to the cell containing the
expected return. Finish by clicking OK.
You should now have a graph that looks like Chart1-B (note the risk-free security).
To draw a line on the graph, such as a Capital Allocation Line, it is easiest to use
Excel's drawing tools. If the drawing toolbar is now already shown, go to "Tools " -
"Customize " - "Toolbars " - and select "Drawing". The drawing toolbar should now be
visible. On the drawing toolbar, click once on the "line" icon. On the graph, left click (and hold)
on the risk-free security and drag the mouse pointer to create the line. After creating
the line, you can move it if necessary by left clicking once on the line and thendragging the end points to new locations.
You should now have a graph that looks like Chart1-C.
To change any formats on the graph, such as the size or color of data points, the scale
or number formats on axes, etc., simply right click on the object you want to change
and select "Format". You can also use the drawing tools to add text, arrows, or other items
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Example Expected Return - Standard Deviation Graph (part 1)
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Example Expected Return - Standard Deviation Graph (part 2)
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Example Expected Return - Standard Deviation Graph (part 3)