For this exercise assume the following inputs $($which happen to be historic averages$)$:

${}_{A,B}=\mathrm{.}30$

$R_f=3\mathrm{.}46\%$

$R_A=16\mathrm{.}47\%$

$R_B=11\mathrm{.}95\%$

${}_A=1\mathrm{.}53$

${}_B=1\mathrm{.}0$

${}_A=\mathrm{.}32$

${}_B=\mathrm{.}2$

Assignment: What is the optimal ratio of large cap stocks to small cap stocks to hold in your

portfolio? Enter your answer as a percentage of small cap stocks, for example, a $50/50$ mix

would be entered as $1.$ To get this ratio divide the optimal percentage allocation in large caps

by the optimal percentage allocation in small caps. $*$Note$,$ no short selling is allowed in this

exercise.