Intro You have $7,000 to invest. You've done some security analysis and generated the following data for three stocks and Treasury bills, including weights in the optimal risky portfolio (ORP) from doing Markowitz portfolio optimization: Security Expected return (%) Variance Beta Weight in ORP (%) Stock A Stock B Stock CT-bills 12 9 5 3 0.04 0.03 0.02 1.2 1.5 0.8 0 54 18 28 0 0 Part 1 Attempt 1/10 for 10 pts. What is the expected return of the optimal risky portfolio (ORP)? 0.0862 Correct Expected return of ORP: Elrp) = WA E(TA) + WB E(TB) + WC E(rc) = 0.54 0.12 +0.18 0.09 +0.28 0.05 = 0.095 Part 2 Attempt 3/10 for 8 pts. How much money should you invest in the ORP to achieve an expected return of 5% for the complete portfolio (in $)? 0+ decimals Part 3 Attempt 1/10 for 10 pts. If you want to achieve an expected return of 5% for the complete portfolio, how much money should you invest in stock A (in $)? 0+ decimals Submit