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please solve for Q ) B and C and provide formula 9. As chief investment officer of a small endowment fund, you are considering expanding

please solve for Q ) B and C
and provide formula
image text in transcribed
9. As chief investment officer of a small endowment fund, you are considering expanding the fund's strategic asset allocation from just common stock (CS) and fixed-income (FI) to include private real estate partnerships (PR) as well: Current Allocation: 60 percent of Asset CS, 40 percent of Asset FI Proposed Allocation: 50 percent of Asset CS, 30 percent of Asset FI, 20 percent of Asset PR You also consider the following historical data for the three risky asset classes (CS, FI, and PR) and the risk-free rate (RFR) over a recent investment period: You have already determined that the expected return and standard deviation for the Current Allocation are: E(Rcurrent)=7.40 percent and current=10.37 percent a. Calculate the expected return for the Proposed Allocation. b. Calculate the standard deviation for the Proposed Allocation. c. For both the Current and Proposed Allocations, calculate the expected risk premium per unit of risk (that is, [E(Rp)RFR]/ ). d. Using your calculations from part (c), explain which of these two portfolios is the - likely to fall on the Markowitz efficient frontier

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