$1$ MINI CASE

INSTRUCTIONS FOR SOLVING FOR THE OPTIMAL INTERNATIONAL PORTFOLIO $($Note these instructions are identical to the case in the book, but more detailed$)$

USING THE DATA BELOW CALCULATE $1$ a through $1d$

DATA

$10$ RISK FREE RATE

$11$

$12$

$1$a$)$ EXPECTED RETURN $($using $50\frac{\%}{50}\%)$

$1$b$)$ STANDARD DEVIATION OF PORTFOLIO $($using $50\frac{\%}{50}\%)$

$1$c$)$ VARIANCE US MARKET

$1$d$)$ VARIANCE UK MARKET

$\backslash$table$[[$W$1($US$),$W$2($UK$),\backslash$table$[[$RETURN ON$],[$PORTFOLIO$]],\backslash$table$[[$STANDARD$],[$DEVLATION ON$],[$PORTFOLIO$]]],[0\mathrm{.}25,\backslash$table$[[1\mathrm{.}00],[0\mathrm{.}75]],,],[0\mathrm{.}50,0\mathrm{.}50,,],[\backslash$table$[[0\mathrm{.}75],[1\mathrm{.}00]],0\mathrm{.}25,,],[,0\mathrm{.}00,,]]$