Follow the below steps and answer all of the below questions in a Word document. Use an Excel Spreadsheet to show your work.

Download the historical data on3-month Treasury Bill rateandS&P500monthly returns.Suppose that the U.S. market proxied by the S&P500 is your risky portfolio.

Part I

1. If your risk-aversion coefficient isA= 4 and you believe that the entire 1950-2017 period is representative of future expected performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity?
2. What if you believe that the 1984 -2017 period is representative?
3. How do you results change if you believe that the 1950 -1983 period is representative?
4. What do you conclude upon comparing your answers to (1), (2)and(3)?

Part II

Repeat Part I with a coefficient of risk aversion A=2.0. Comment on the relationship between risk aversion and asset allocation.

I need the excel document to show work