port. Study slope of CAL (Sharpe ratio) US equity International index equity index retums retums (Weight) Weight) Exp. Ret 1 0 100% 2 10% 90% 3 20% 80% 4 30% 70% 5 40% 60% 6 50% 50% 7 60% 40% 8 70% 30% 9 80% 20% 10 90% 10% 11 100% 0% 3. Suppose you are a US investor looking for international diversification opportunities. Your investment advisor offers you an international equity index that expects annual returns of 18%, but the volatility of these returns is 48%. This international index comprises other developed countries as well as some emerging economies. The expected returns, volatility, and correlations are provided below: Risk-Free Rate 3% 0% US equity Index returns (annual) 8% 18% International equity Index returns (annual) 18% 48% Exp. Returns st.dev (volatility) correlation US equity index Correlation International equity index 0 1 0.4 0 0.4 1 a. Calculate the expected portfolio return, standard deviation, and Sharpe ratios assuming the weights for the US and International equity indexes are as follows (10 points): port. Study slope of CAL (Sharpe ratio) US equity International index equity index retums retums (Weight) Weight) Exp. Ret 1 0 100% 2 10% 90% 3 20% 80% 4 30% 70% 5 40% 60% 6 50% 50% 7 60% 40% 8 70% 30% 9 80% 20% 10 90% 10% 11 100% 0% 3. Suppose you are a US investor looking for international diversification opportunities. Your investment advisor offers you an international equity index that expects annual returns of 18%, but the volatility of these returns is 48%. This international index comprises other developed countries as well as some emerging economies. The expected returns, volatility, and correlations are provided below: Risk-Free Rate 3% 0% US equity Index returns (annual) 8% 18% International equity Index returns (annual) 18% 48% Exp. Returns st.dev (volatility) correlation US equity index Correlation International equity index 0 1 0.4 0 0.4 1 a. Calculate the expected portfolio return, standard deviation, and Sharpe ratios assuming the weights for the US and International equity indexes are as follows (10 points)