An investment company is considering three Exchange Traded Funds for one of its important clients: Telecom ETF S has an expected return equals 11% and a standard deviation equals 18%. Real Estate ETF G has an expected return equals 8% and a standard deviation equals 13%. The third ETF is money market and has an expected return cquals 5%. S and G are uncorrelated. The client is risk averse with a risk aversion coefficient equals to eight. 1. Find the proportions of cach asset, and the expected return and standard deviation of the tangency portfolio. (4 marks) 2. What is the reward-to-variability (Sharpe) ratif of the best fcasible capital allocation line? (2 marks) 3. What is the composition of the optimal portfolio in terms of all available funds? (4 marks) 4. What are the expected return and standard deviation of the optimal portfolio in (3)? (4 marks) S. A less sophisticated investment client would like to use only the Telecom and Real Estate ETFs, and require an expected retur of 16%, what must be the investment proportions of her portfolio in all assets? Compare your result to the optimized portfolio in part 3. What do you conclude? (6 marks)