(d) If you combine stocks and bills as an investment, what is your optimal combination? What is your expected return? What is your portfolios volatility?

(e) If you combine bonds and bills, what is your optimal combination? What is your expected return? What is your portfolios volatility?

(g) If you combine all three assets in your portfolio, what is your optimal combination? What is your expected return? What is your portfolios volatility?

You are trying to plan your investments for the next year. You have decided that the market will either be strong (a bull market), weak (a bear market) or normal. You think that stocks, bonds, and bills will earn the following returns in these scenarios: You have also decided that you have a risk-aversion (A) of 8. You are trying to plan your investments for the next year. You have decided that the market will either be strong (a bull market), weak (a bear market) or normal. You think that stocks, bonds, and bills will earn the following returns in these scenarios: You have also decided that you have a risk-aversion (A) of 8