Q4. Portfolio of risky assets

4. A portfolio of risky assets has parameters a = 1,8 = 3, c = 10. Find the feasible set in the o-plane. (a) A riskless asset with rate of return no = 2 for both lending and borrowing is added to the portfolio. Find the capital market line. (bDetermine the allocation to the riskless and risky assets of an investor with a risk aversion parameter 1/5. 4. A portfolio of risky assets has parameters a = 1,8 = 3, c = 10. Find the feasible set in the o-plane. (a) A riskless asset with rate of return no = 2 for both lending and borrowing is added to the portfolio. Find the capital market line. (bDetermine the allocation to the riskless and risky assets of an investor with a risk aversion parameter 1/5