ovements, choose Check for Updates 3. Optimal portfolio choice with two risky nie and we risk-free asset: Jessica $10,000. She cast the money in (t) a corporate bond (2) Mock, and (3) the risk-free to bill The table below provides these expected returns and standard deviations: Bond (D) Stock T-Bill Expected Return 2X 14% 2x Standard Deviation 35 25% OM The coefficient of correlation (DE) between the corporate bond and the stock i 20%. Jessica bas a risk avension A-4 (A) Which risky bond of stock) barber Sharpent(spot) () What are the weights of the bonded the stock in the optimal risky portfolio of twory (10%) c) Does the optimal tisky portfolio valigher or lower Sharpentie than the stock and the bond and why? (10%) (d) What we the optimal weights that Jessic chooses for the optimal risky perdolie and for the refree Tbili ber vill perfoot How many dollar should Jessica invest in the corporide bond, the wock, and the Tabletively in the optimal portfe? (points) (e) Suppe that Jessica lasten the invec. For her ricky portfolin, she love 10% in the band and 90% in the wock, la the Stare dhe ky portfolio higher or lower than the Sharpe rutin of the optimal portfolio tut you are in and why?) what is an A. Weil dy polis be the same that qoby? Would ich etmal portfolio Esplain. (515) o Suppose the contin of conto the wack wad the bodo Would the changer de toute ma ky folie and why (39) MacBook Air DOO Data A 8 $ 4 % 5 & 7 ON 8 T R. Y U U 1 G