PLEASE USE CAL EQUATION and USE Excel to show formulas

Optimal portfolio on the indifference curve = E(R) - 0.5*A(s.d.)^2

Risk = 20%

A = 2.5%

Utility = 7%

Question 6 30 pts 6) The market portfolio represented by the S&P 500 has a 12% expected return & 20% risk. The risk- free rate = 5% & the investor's risk aversion coefficient A = 2.5. Use Excel to plot the CAL and the indifference curve. Attach the Excel file to your submission in Canvas. Identify the optimal compete portfolio on the graph. Hint: There are several steps to solving this, which should be done in Excel. First find the utility of the optimal complete portfolio. (30 pts) Upload Choose a File Question 6 30 pts 6) The market portfolio represented by the S&P 500 has a 12% expected return & 20% risk. The risk- free rate = 5% & the investor's risk aversion coefficient A = 2.5. Use Excel to plot the CAL and the indifference curve. Attach the Excel file to your submission in Canvas. Identify the optimal compete portfolio on the graph. Hint: There are several steps to solving this, which should be done in Excel. First find the utility of the optimal complete portfolio. (30 pts) Upload Choose a File