Please do in Excel and show using Solver as well as using the MMULT method to find covariances.

Part 2 . 1. The purpose of this project is to calculate the benefits to diversification across broad asset classes. Assume the expected returns, standard deviations, and correlations for well-diversified portfolios of US stocks, US bonds, US real estate, international developed markets stocks and emerging markets are given as follows: What is the mix of the "Optimal" 5-Asset Risky Portfolio if the Risk-Free Rate is 2\%? Do this in Solver by maximizing the Sharp Ratio of the Optimal Risky Portfolio. Make sure that you constrain the weights in the risky portfolio to add up to 100% and that none of the weights can be negative. Plot the possible allocations between the risk-free asset and the optimal portfolio from 0% to 100% weight on the risky portfolio in 10\% step increments. I.e., 0% weight, then 10% weight... etc. These should all be on one plot. Hint: It will probably be easier to convert the correlations to covariances in a new table and use the MMULT method for building the portfolio variance than trying to build the regular version of the formula. Remember, weights* covariance matrix*"weights, with the weights in the correct format (row or column). Part 2 . 1. The purpose of this project is to calculate the benefits to diversification across broad asset classes. Assume the expected returns, standard deviations, and correlations for well-diversified portfolios of US stocks, US bonds, US real estate, international developed markets stocks and emerging markets are given as follows: What is the mix of the "Optimal" 5-Asset Risky Portfolio if the Risk-Free Rate is 2\%? Do this in Solver by maximizing the Sharp Ratio of the Optimal Risky Portfolio. Make sure that you constrain the weights in the risky portfolio to add up to 100% and that none of the weights can be negative. Plot the possible allocations between the risk-free asset and the optimal portfolio from 0% to 100% weight on the risky portfolio in 10\% step increments. I.e., 0% weight, then 10% weight... etc. These should all be on one plot. Hint: It will probably be easier to convert the correlations to covariances in a new table and use the MMULT method for building the portfolio variance than trying to build the regular version of the formula. Remember, weights* covariance matrix*"weights, with the weights in the correct format (row or column)