8a. 8b. 10. How did the Riverdale portfolio perform over the 1998-2015 period? Report the portfolio mean, standard deviation, and Sharpe ratio. Plot the portfolio frontier given the ve risky assets the college is investing in (you may use the Solver module in Excel for this purpose). Find the mean and standard deviation of the portfolio of risky assets (consisting of investments in three stock portfolios and two bond portfolios) currently chosen by the college's fund manager. Plot it. Is this an efcient portfolio? If not, calculate the investment proportions in the ve assets required to construct an efcient risky portfolio, which would deliver the same expected return as the current choice of risky portfolio. Calculate the investment proportions required to achieve the optimal (tangency) risky portfolio (you may use the Solver module in Excel for this purpose). What is the expected return and standard deviation of such a portfolio? Also, be sure to report the weights and the Sharpe ratio of the tangency portfolio. How does the Sharpe ratio compare to that of Riverdale's current risky portfolio? Calculate the investment proportions required to construct a complete portfolio (i.e. one which mixes the optimal risky portfolio with T-bills) that has an expected return equal to the present (complete) portfolio's expected return. What is the expected standard deviation of return on such a portfolio? How does this compare with the standard deviation of Riverdale's current complete portfolio? Suggest a complete portfolio allocation between the optimal risky portfolio and Tbills to achieve the college's objective of a rate of return equal to 0.01 (1%) per month. What is the expected standard deviation of the portfolio? Weaver is also interested in knowing if the college should include some alternative asset classes specically, real estate, commodities, private equity, hedge funds, and high-yield bonds in its portfolio. Make a case for or against the inclusion of ve alternative assets (labeled REITs, TIMBER, PE, HFMACRO, and HYBOND) in the college's overall portfolio. Justify your decision by depicting the portfolio frontier that includes the ve alternative assets. Plot it on the same graph you constructed for number (2). Find the optimal (tangency) portfolio consisting of all ten asset classes. Calculate the complete portfolio allocation required to achieve the target rate of return mandated by the college using this expanded universe of assets. What is the expected standard deviation of such a portfolio? Find the 5-asset tangency portfolio, assuming no short sales of risky assets are allowed. Also, nd the 10asset tangency Portfolio, assuming no short sales are allowed. Compare these results to the tangency portfolios when short sales are allowed. What happens to the Sharpe ratio? Which assets drop out and which assets dominate? Present a forceful argument for using your services, summarizing what you have shown. Also, make a few succinct points that might help sway a board member skeptical of asset allocation methods (the member believes that individual stock selection is more important than asset allocation)