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Start by clarifying the data layout and assumptions, then demonstrate the formula for the first asset using relative references for row-wise calculations and absolute references for any fixed parameters. Finally, show how to sum the adjusted values and explain how Excel's automatic recalculation ensures updates when inputs change.
Pro tip: Mention that you would use structured references if the data is in an Excel Table, which makes formulas self-expanding and easier to audit. Also, note that you'd consider using the LET function to avoid repeating the same expression, improving readability and performance.
Assume columns: A for Asset, B for Market Value, C for Haircut %. Data starts in row 2. Confirm if haircut is expressed as a percentage (e.g., 5% for 5%) or decimal (0.05).
In cell D2, enter =B2*(1-C2). This uses relative references so it can be copied down. If haircut is a fixed value in a separate cell, use absolute reference like $C$1.
Drag the fill handle or copy-paste the formula from D2 to D3, D4, etc. Relative references adjust automatically to B3*(1-C3), B4*(1-C4), etc.
In a separate cell, use =SUM(D2:Dn) where n is the last row of data. This sums all adjusted values. Alternatively, use =SUMPRODUCT(B2:Bn,1-C2:Cn) to compute directly without helper column.
Excel recalculates formulas automatically when inputs change (unless manual calculation is enabled). For dynamic ranges, convert the data to an Excel Table (Ctrl+T) and use structured references like =SUM(Table1[Adjusted Value]).
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.