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b) Suppose that Salah, whose degree of risk version is , wat opportunity set. Idify the following for Sal's po optimal printalie from the b.1.

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b) Suppose that Salah, whose degree of risk version is , wat opportunity set. Idify the following for Sal's po optimal printalie from the b.1. Weight of A and B (2) b.2. Risk and return for Salah's portfolio (2 mark) b.3. Salah's utility value b.4. Mark Salah's portfolio on the graph in part a above c) If there exista risk-free asset (h) that earns 2% and return Identify the following for the optimal risky portfolio (P) (2 marks) c.1. Composition of P (Weights of stock A and B) (1 mark) c.2. Return and risk of the optimal risky portfolio (P) c.3. Draw the efficient frontier in the presence of a risk-free asset and mark portfolio P on the graph in parta above (1 mark) 4) Salah now wants to invest in a complete portfolio dl. What proportion of investment should Salah invest in the optimal risky portfolio? Identify Weight of P, Weight of stocks A and B, and Weight of risk-free rate. (2 marks) (1 marki d.2 What are the risk and return for Salah's complete portfolio? b) Suppose that Salah, whose degree of risk version is , wat opportunity set. Idify the following for Sal's po optimal printalie from the b.1. Weight of A and B (2) b.2. Risk and return for Salah's portfolio (2 mark) b.3. Salah's utility value b.4. Mark Salah's portfolio on the graph in part a above c) If there exista risk-free asset (h) that earns 2% and return Identify the following for the optimal risky portfolio (P) (2 marks) c.1. Composition of P (Weights of stock A and B) (1 mark) c.2. Return and risk of the optimal risky portfolio (P) c.3. Draw the efficient frontier in the presence of a risk-free asset and mark portfolio P on the graph in parta above (1 mark) 4) Salah now wants to invest in a complete portfolio dl. What proportion of investment should Salah invest in the optimal risky portfolio? Identify Weight of P, Weight of stocks A and B, and Weight of risk-free rate. (2 marks) (1 marki d.2 What are the risk and return for Salah's complete portfolio

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