Please answer all aspects of the questions and use excel WS i have attached.

1) The following table contains the covariance matrix for five assets. The mean returns are also given. A B MOOO B 0.030 0.000 0.000 0.000 0.0001 C 0.000 0.055 0.000 0.000 0.000 D 0.000 0.000 0.110 0.000 0.000 E 0.000 0.000 0.000 0.230 0.000 0.000 0.000 0.000 0.000 0.270 Mean Returns 0.032 0.041 0.053 0.061 0.074 D Build a model using Excel's Solver functionality to find the optimal portfolio (no short sales permitted) when the risk-free rate is equal to a) 0% b) 1% c) 2% d) 3% e) 4% Thoroughly interpret and compare your three optimal portfolios and rationalize why the results change the way they do as the risk-free rate increases 1 N 0 A MER 2012 14 000 0000 0000 DOSS 0000 000 0.000 011 0.000 0000 0000 11000 0.000 DO 020 0.000 0.000 G000 td NE PS 0 Paulo Paris GRAM 13 14 15 1) The following table contains the covariance matrix for five assets. The mean returns are also given. A B MOOO B 0.030 0.000 0.000 0.000 0.0001 C 0.000 0.055 0.000 0.000 0.000 D 0.000 0.000 0.110 0.000 0.000 E 0.000 0.000 0.000 0.230 0.000 0.000 0.000 0.000 0.000 0.270 Mean Returns 0.032 0.041 0.053 0.061 0.074 D Build a model using Excel's Solver functionality to find the optimal portfolio (no short sales permitted) when the risk-free rate is equal to a) 0% b) 1% c) 2% d) 3% e) 4% Thoroughly interpret and compare your three optimal portfolios and rationalize why the results change the way they do as the risk-free rate increases 1 N 0 A MER 2012 14 000 0000 0000 DOSS 0000 000 0.000 011 0.000 0000 0000 11000 0.000 DO 020 0.000 0.000 G000 td NE PS 0 Paulo Paris GRAM 13 14 15