Draw a Graph as follows: You may Use any Software

Upload the final graph.

E[Rp] on the Y- Axis : Range 0% to 15% in increments of 1% (clearly marked on the Y- Axis).

Sigma p on the X-Axis: Range 0% to 20% in increments of 1% (Clearly Marked on the X - Axis)

Draw a hyperbola (curve for) weights in security i, j from (-0.3, 1.3) to (1,0) in increments of 0.10 (14 points).

Draw the Capital Allocation Line Marking all relevant points clearly.

You are given the following information on the future states of the economy and returns for 2 risky securities i and j. Assume that the Risk-Free rate of interest is 2.0% per year. Scenario Probability Very Good 25.00% Return for Security Return for Security i j -20.00% 5.00% 10.00% 20.00% 30.00% -12.00% Good 25.00% 25.00% Average Poor 25.00% 50.00% 9.00% Compute the following items