9. Use the spreadsheet to examine the effects of changing these

assumptions on the risk aversion profile:

a. LT risk aversion.

b. LT horizon.

c. ST/LT ratio.

d. 1-year/10-year ratio.

e. H.

f. Mean return.

The following is the spreadsheet

Horizon Dependent Risk Aversion
Assumptions					Shortfall Constraint
Long-term Risk Aversion			1.25		H	0.00%
Long-term Horizon (N)			30		m	7.50%
Ratio: ST/LT Risk Aversion			5		s	15.00%
Ratio: 1YR/10YR Risk Aversion			3.5		PS(1)	0.3085
Program
Objective	Min		0.0000
f			1.3215
g			-4.00
y			1.250