Could we use the optimal weights of a previous period such as sub-period 1 or sub-period 2 or the whole period, as the recommended asset allocation for the future? Explain using the out of sample test results below. For reference the other results will be posted below.

Optimal portfolios in subperiod 2 ing optimal weights from subperiod1 in subp COP2 COP29 COP2 (OS) COP29 (OS) Portfolio's Retur Portfolio's Risk Portfolio's RTV R % RTV Difference from COP2 0.0056 0.0193 0.2047 (RTV COP2(OS)/RTV COP2)*100% ; or 96 0.0075 0.0339 0.1719 0.0009 0.0017 0.4459 217.85% 0.0075 0.033935503 0.171894702 9999.69% 0.50156% 1.38111% 0.24248 0.75000% 3.39355% 0.17189 (5) Portfolio Weights (6) Portfolio Weights 2% risk-free rate: E(rp) 9%pa OP19 (7) Portfolio Weights 2% risk-free rate: E(rp) 996; Investment limits 19 2% risk-free rate; Investment limits ! 0.00000% 0.00000% 0.00000% 0.00000% 5.32319% COPA COP2 OPA9 29 9 29 11.09356% 14.62729% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 2.00000% 30.00000% 94% 10.97977% 0.00000% 0.00000% 0.50156% 1.38111% 0.24248 19.11660% 0.00000% 0.00000% 0.00000% 0.00000% 15.35349% 0.00000% 23.15709% 0.00000% 0.00000% 42.37282% 0.00000% 0.75000% 2.44356% 0.23872 0.00000% 0.00000% 0.00000% 0.00000% 6.73179% 18.54817% 4.78083% 41.16122% 0.00000% 13.82613% 14.95186% 0.00000% 0.75000% 1.27135% 0.45883 0.00000% 0.00000% 0.00000% 0.20000% 0.32000% 0.88000% 94.78000% 2.00000% 0.00000% 1.01000% 0.00000% 0.81000% 0.75000% 3.39355% 0.17189 19.19713% 57.82758% 0.00000% 0.00000% 0.00000% 0.00000% 0.24734% 5.00000% 0 0.00000% 0.066832736 15.84964% 0.174365503 0.05 11.79176% 0.00000% 30.0000096 30.0000096 20.15102% 0.00000% 40.6746196 16.34516% 42.392 0.00000% 0.121323905 0.00000% 0.125896974 42.80222% 0.161580882 0.90605% 12.07844% 0.00000% 0.55666% 1.29915% 0.30019 15.23275% 16.30713% 0.00000% 0.7062 5% 1.16575% 0.46286 40.17242% Extected Return Standard Deviation Sharp Ration RTV 0.7500096 0.7500096 0.75000% 2.48061% 0.012760258 0.005437478 0.23516 0.45715 1.07280 Optimal Portfolios (for risk free rate (2) Portfolio Weights 2% risk-free rate (3) Portfolio Weights 3% risk-free rate Asset Classes 1 S&P 500 2 RUSSELL 2000 3 MSCI EAFE 4 MSCI Emerg 5 S&P GSCI 6 FTSE NAREITT 7 3-month T-bill 8 US Treasury 9 US IG C 10 US High Yield 11 Global High Y 12 Global Bonds Portfolio's retu Portfolio's Risk Portfolio's P OPA4 12.27% 0.00% 0.00% 0.00% 0.00% 3.72% 0.00% 59.87% 000% 0.00% (4) Portfolio Weights 4% risk-free rate OP41 0.00% 0.00% 0.00% 0.00% 7.24% 20.13% 0.00% 42.71% 0.00% 14.16% 15.76% OP2 10.88% 0.00% 0.00% 0.00% 0.00% 1.29% 0.00% 67.18% 0.00% 1.56% OP31 000% 0.00% 0.00% 0.00% 0.58% 1.36% 92.18% 2.58% 000% 1.84% 1.47% 0.00% 0.36% 0.17% 0.648782 OP32 12.13% 0.00% 0.00% 0.00% 0.00% OP42 22.09% 0.00% 000% 0.00% 0.00% 0.11% 9.45% 0.00% 0.00% 0.00% 0.00% 000% 000% 69.28% 0.00% 21.27% 000% 0.00% 0.00% 0.11% 0.31% 0.00% 0.00% 0.04% 0.00% 0.26% 0.00% 0.00% 0.00% 63.43% 0.00% 24.44% 0.00% 0.00% 36.17% 11.68% 30.06% 95.74% 19.10% 24.13% 0.00% 0.29% 0.34% 0.357276 0.34% 0.15% 118.81% 0.00% 0.56% 1.19% 0.256828 000% 0.59% 1.35% 0.190587 0.78% 1.35% 0.328108 0.56% 0.45% 1.05% 0.2742 14 0.48% 1.15% 0.197605 1.70% 0.133967