Question 2 (30 points): You have the following assets available to you: Asset Expected return Standard deviation Dullco equity 0.06 0.094 Exciting Co equity 0.19 0.24 Riskless debt 0.02 NA The covariance between the returns on SafeCo equity and DangerCo equity is 8.865 a) : What fraction of the optimal risky portfolio is composed of SafeCo stock? b) : What percentage of her money should Alice put in the risky portfolio if her coefficient of risk aversion is 2.6? c) : What percentage of her money should Bob put in the risky portfolio if his coefficient of risk aversion is 3.47 d) : What is the difference between the Sharpe Ratios of Alice's complete portfolio and Bob's complete portfolio? Question 2 (30 points): You have the following assets available to you: Asset Expected return Standard deviation Dullco equity 0.06 0.094 Exciting Co equity 0.19 0.24 Riskless debt 0.02 NA The covariance between the returns on SafeCo equity and DangerCo equity is 8.865 a) : What fraction of the optimal risky portfolio is composed of SafeCo stock? b) : What percentage of her money should Alice put in the risky portfolio if her coefficient of risk aversion is 2.6? c) : What percentage of her money should Bob put in the risky portfolio if his coefficient of risk aversion is 3.47 d) : What is the difference between the Sharpe Ratios of Alice's complete portfolio and Bob's complete portfolio