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Investors can design a risky portfolio based on two stocks, K and L. Stock K has an expected rate of return of 18% and a standard deviation of return of 30%. Stock L has an expected rate of return of 10% and a standard deviation of return of 12%. The correlation coefficient between the two stocks is 0.5. The risk-free rate is 3%. a. (4 MARKS) What is the weight of stock K in the optimal risky portfolio? What are the expected return and the standard deviation of return on this portfolio? b. (4 MARKS) Investor Peter wants to have a complete portfolio (portfolio that includes T-bills and risky securities) with an expected return of 15%. What are the weights of each security in the complete portfolio? What is the standard deviation of return on this portfolio? C. (4 MARKS) Investor Julien has a coefficient of risk aversion of 5. What are the weights of each security in her optimal complete portfolio? What are the expected return and the standard deviation of return on this portfolio? d. (3 MARKS) Sketch the portfolio opportunity set for Julien. Show her risky portfolio and her complete portfolio. Investors can design a risky portfolio based on two stocks, K and L. Stock K has an expected rate of return of 18% and a standard deviation of return of 30%. Stock L has an expected rate of return of 10% and a standard deviation of return of 12%. The correlation coefficient between the two stocks is 0.5. The risk-free rate is 3%. a. (4 MARKS) What is the weight of stock K in the optimal risky portfolio? What are the expected return and the standard deviation of return on this portfolio? b. (4 MARKS) Investor Peter wants to have a complete portfolio (portfolio that includes T-bills and risky securities) with an expected return of 15%. What are the weights of each security in the complete portfolio? What is the standard deviation of return on this portfolio? C. (4 MARKS) Investor Julien has a coefficient of risk aversion of 5. What are the weights of each security in her optimal complete portfolio? What are the expected return and the standard deviation of return on this portfolio? d. (3 MARKS) Sketch the portfolio opportunity set for Julien. Show her risky portfolio and her complete portfolio