= = 19. Consider four risky assets with expected rates of return Mi 0.08, M2 0.1, M3 0.05, p4 0.02, variances o 0.03, o2 0.04, 0; 0.02, o 0.006, and co- variances 012 0.001,013 = -0.002,014 -0.004, 023 -0.0002, 024 0,034 -0.005. There is a risk-free asset with rate of return r f = 0.015. (a) Find the risky fund M which can be combined with the risk-free asset. (b) Find the combined portfolio that will give you the best expected rate of return for a given risk (defined by the std of the combined portfolio) of oc = 0.03. Calculate the expected rate of return. = = 19. Consider four risky assets with expected rates of return Mi 0.08, M2 0.1, M3 0.05, p4 0.02, variances o 0.03, o2 0.04, 0; 0.02, o 0.006, and co- variances 012 0.001,013 = -0.002,014 -0.004, 023 -0.0002, 024 0,034 -0.005. There is a risk-free asset with rate of return r f = 0.015. (a) Find the risky fund M which can be combined with the risk-free asset. (b) Find the combined portfolio that will give you the best expected rate of return for a given risk (defined by the std of the combined portfolio) of oc = 0.03. Calculate the expected rate of return