CMHK G T9:26 .3%C4

CMHK 30/0C4D' Gordon 27/11/2020 T9:15 7. Lauren is also interested in knowing if the college should diversify its portfolio holdings to include real estate (represented by Equity REITs). international stocks (proxied by the EAFE index representing a portfolio Of stocks from Europe, Asia, and the Far East), and precious metals (PM) in its portfolio. Make a case for or against the inclusion of these alternative assets in the college's overall portfolio. Justify your decision by depicting the portfolio frontier in the presence of the eight risky assets (i.e., the five risky assets that make up the current portfolio plus real estate, international stocks, and precious metals). Calculate the efficient portfolio allocations required to achieve the 'floor' rate of return of 1.00% per month (mandated by the college) with this expanded universe of assets. What is the expected standard deviation of such a portfolio?