ASSIGNMENT 2ALT

1. An investor has access to three different assets to invest in: Risk-free T-Bills, a US stock index fund, and a Canadian stock index fund. The investor has a risk aversion coefficient of four (A=4). Security analysis has established the following:

	Expected Return	St. Dev. of Return	Return Correlation
T-Bills	2.0%	0%
US Stock Fund	10.0%	20%	20%
Canadian Stock Fund	8.0%	20%

1. Using Excel, provide the expected return and standard deviation of return for all possible investment shares in the US fund varying from -50% to +150% in increments of 5%. From these numbers produce a graph of the Minimum Variance Frontier.