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Instead of computing the optimal allocations analytically, let's conduct an experiment. Generate above 700 random allocation sets: 4x1 vectors. Those will not be optimal

Instead of computing the optimal allocations analytically, let's conduct an experiment. Generate above 700

Instead of computing the optimal allocations analytically, let's conduct an experiment. Generate above 700 random allocation sets: 4x1 vectors. Those will not be optimal and can be negative. Standardise each set to satisfy w'1 = 1. In fact, generate 3 allocations and compute the 4th. . For each set, compute n = w'u and on = w'Ew. 1 . Plot the cloud of points, un vertically on n horizontally. Explain this plot. Hint: use the investment universe settings above, but the task is not optimisation, and no other formulae involved. Compute only what is asked in the question.

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