f$)$ The Reward to variability ratio of Portfolio T$*($RTVT$*).[2$ points$]$

g$)$ RTVM $[2$ points$]$

h$)$ Form a portfolio in Point S$,$ with a target standard deviation $\backslash$sigma S of $15\%.$ Specifically, estimate the

percent of your budget invested in M $($index fund$)$ and the percent invested in T$-$bills $($or

borrowing at the risk$-$free rate$).$ If your investment budget is $$100,000,$ how much would you

invest in the index fund? How much in T$-$Bills? $[6$ points$]$

i$)$ The expected $($percent$)$ return on the portfolio in point S$,$ i$.$e$.,$ E$($RS$).[2$ points$]$

j$)$ The expected dollar return by investing on the index fund in point D$,$ i$.$e$.,$ E$($$Ret index fund$).[2$

points$]$

k$)$ The interest $($$$)$ to be paid or received $($if any$)$ in point S$.[2$ points$]$

l$)$ The expected dollar return on portfolio S$,$ i$.$e$.,$ E$($$RS$).[2$ points$]$

m$)$ RTVS$.[2$ points$]$

n$)$ Which of the three investment alternatives would you choose $($S$,$ M or T$*)?$ Why? $[2$ points$]$f$)$ The Reward to variability ratio of Portfolio T$*($RTVT$*).[2$ points$]$

g$)$ RTVM $[2$ points$]$

h$)$ Form a portfolio in Point S$,$ with a target standard deviation $\backslash$sigma S of $15\%.$ Specifically, estimate the

percent of your budget invested in M $($index fund$)$ and the percent invested in T$-$bills $($or

borrowing at the risk$-$free rate$).$ If your investment budget is $$100,000,$ how much would you

invest in the index fund? How much in T$-$Bills? $[6$ points$]$

i$)$ The expected $($percent$)$ return on the portfolio in point S$,$ i$.$e$.,$ E$($RS$).[2$ points$]$

j$)$ The expected dollar return by investing on the index fund in point D$,$ i$.$e$.,$ E$($$Ret index fund$).[2$

points$]$

k$)$ The interest $($$$)$ to be paid or received $($if any$)$ in point S$.[2$ points$]$

l$)$ The expected dollar return on portfolio S$,$ i$.$e$.,$ E$($$RS$).[2$ points$]$

m$)$ RTVS$.[2$ points$]$

n$)$ Which of the three investment alternatives would you choose $($S$,$ M or T$*)?$ Why? $[2$ points$]$