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b) Suppose that Reema, whose degree of risk aversion is 6, wants to select the optimal portfolio from the opportunity set. Identify the following for

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b) Suppose that Reema, whose degree of risk aversion is 6, wants to select the optimal portfolio from the opportunity set. Identify the following for Reema's portfolio: b.1. Weight of X and Y (1 mark) b.2. Risk and return for Reema's portfolio (1 mark) b.3. Reema's utility value (0.5 mark) b.4. Mark Reema's portfolio on the graph in part a above (0.5 mark) c) If there exist a risk-free asset (r) that earns 4% annual return. Identify the following for the optimal risky portfolio (P). c.1. Composition of P (Weights of stock X and Y) (1 mark) c.2. Return and risk of the optimal risky portfolio (P). (1 mark) c.3. Draw the efficient frontier in the presence of a risk-free asset and mark portfolio P on the graph in nart a above (9.5 mark) b) Suppose that Reema, whose degree of risk aversion is 6, wants to select the optimal portfolio from the opportunity set. Identify the following for Reema's portfolio: b.1. Weight of X and Y (1 mark) b.2. Risk and return for Reema's portfolio (1 mark) b.3. Reema's utility value (0.5 mark) b.4. Mark Reema's portfolio on the graph in part a above (0.5 mark) c) If there exist a risk-free asset (r) that earns 4% annual return. Identify the following for the optimal risky portfolio (P). c.1. Composition of P (Weights of stock X and Y) (1 mark) c.2. Return and risk of the optimal risky portfolio (P). (1 mark) c.3. Draw the efficient frontier in the presence of a risk-free asset and mark portfolio P on the graph in nart a above (9.5 mark)

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