3. Consider a portfolio, P, invested in bond and equity with the following property: w: Weight on equity Ere) = 20%, 0 g = 30% Erd) = 12%, op = 15% Corr(re;rp) = 0.1 (a) What is the expected return on the portfolio? (b) What is the variance of the portfolio? 1 (c) What is the weight on equity in the minimum-variance portfolio? (d) Suppose that a risk-free T-bills rate is 8%. What is the optimal weight on equity? (e) What is the Sharpe ratio of the best feasible CAL? (f) Consider a complete portfolio, C, invested in a risky portfolio, P, and T-bills. Sup- pose that an investor has a mean-variance utility function given U = E(r) 0.5A02 with A = 4. What proportion, y, of total investment should be invested in P