(1 point) Suppose three assets have expected rates of return

r1=1,r2=2,r1=3.r1=1,r2=2,r1=3.

variances

12=1,22=4,32=912=1,22=4,32=9

and covariances

1,2=1,1,3=0,2,3=0.1,2=1,1,3=0,2,3=0.

Also suppose a single risk-free asset with return rate

rf=0.5rf=0.5

The weights for the one fund F of the One Fund Theorem are

w1=w1= , w2=w2= , w3=w3=

Enter numeric values or expressions such as fractions that reduce to numeric values.

The expected rate of return of the fund F is

rF=rF=

and the variance is

F2=F2=

The efficient frontier for the collection of portfolios that may be constructed from the three risky assets and the risk-free asset, is

()=(0)(1)+(F),()=(0)(1)+(F),

r()=(rf)(1)+(rF)r()=(rf)(1)+(rF)

where 00. These may be rewritten as

()=()= ++

r()=r()= ++

where 00.

When designing efficient portfolios, increasing the expected rate of return from rr to r+rr+r requires also increasing the volatility from to ++ where

== r

DON'T COPY FROM OTHER CHEGG EXPERT I SAW THEIR ANSWER AND THEY WERE WRONG

(1 point) Suppose three assets have expected rates of return 11=1, T2 = 2, Ti = 3. variances 012 = 1, 022 = 4, 032 = 9 and covariances 01,2 = 1, 01,3 0, 2,3 0. Also suppose a single risk-free asset with return rate r=0.5 The weights for the one fund F of the One Fund Theorem are W1 1/6 W2 2/6 W3 = 3/6 Enter numeric values or expressions such as fractions that reduce to numeric values. The expected rate of return of the fund F is rp=1.8072 and the variance is op2 = 3.26607 The efficient frontier for the collection of portfolios that may be constructed from the three risky assets and the risk-free asset, is o(a) = (0) (1 - a) + (op)a, F(a) = (rf)(1 - a) +(Tp)a where a > 0. These may be rewritten as o(a) + F(a) + where a > 0. When designing efficient portfolios, increasing the expected rate of return from 7 to 7 + Ar requires also increasing the volatility from o to o + Ao where Ar (1 point) Suppose three assets have expected rates of return 11=1, T2 = 2, Ti = 3. variances 012 = 1, 022 = 4, 032 = 9 and covariances 01,2 = 1, 01,3 0, 2,3 0. Also suppose a single risk-free asset with return rate r=0.5 The weights for the one fund F of the One Fund Theorem are W1 1/6 W2 2/6 W3 = 3/6 Enter numeric values or expressions such as fractions that reduce to numeric values. The expected rate of return of the fund F is rp=1.8072 and the variance is op2 = 3.26607 The efficient frontier for the collection of portfolios that may be constructed from the three risky assets and the risk-free asset, is o(a) = (0) (1 - a) + (op)a, F(a) = (rf)(1 - a) +(Tp)a where a > 0. These may be rewritten as o(a) + F(a) + where a > 0. When designing efficient portfolios, increasing the expected rate of return from 7 to 7 + Ar requires also increasing the volatility from o to o + Ao where Ar