How do you create a hyperlink in Excel?

Creating a hyperlink in Excel is best accomplished by selecting the cell where you want the hyperlink to appear, right-clicking, and then choosing the "Hyperlink" option from the context menu. This method opens a dialog box that allows you to specify the link address, and you can also add display text and other attributes.

Using the “Hyperlink” feature provides a straightforward way to insert links to websites, documents, or other locations within your workbook. It also allows for customization, such as linking to email addresses or defining specific display names for ease of use.

While typing the URL directly into a cell may display it as text, it won’t create an actual hyperlink unless Excel automatically recognizes the format, which isn't as reliable or customizable. Similarly, dragging and dropping a link does not effectively create a hyperlink within the cell context. The "Insert function" option typically refers to placing various functions in cells but does not apply to hyperlink creation in this scenario. Thus, the method of right-clicking and selecting "Hyperlink" is the correct approach for adding a functional and customizable link in Excel.