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Question 3 Assume you have found the Optimal Risky Portfolio Optimal Risky Portoflio begin{tabular}{|l|r|} hlineE[Rorp] & 17.50% hlineORP & 22.10% hliner1 (borrowing) &

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Question 3 Assume you have found the Optimal Risky Portfolio Optimal Risky Portoflio \begin{tabular}{|l|r|} \hlineE[Rorp] & 17.50% \\ \hlineORP & 22.10% \\ \hliner1 (borrowing) & 2% \\ \hliner1 (lending) & 1% \\ \hline \end{tabular} (3.a) Generate the data you need to display the graph of the Capital Allocation Line. (3.b) Based on your personal feelings, determine how much weight you would put in the Optimal Risky Portfolio (Hard to get a wrong answer here. Just don't answer something silly.) 11 (3.c) Based on your answer from (3.b), calculate your degree of risk aversion. (3.d) Add one point (just one marker) to the graph showing where your portoflio would be on the 12 Capital Allocation Line 13 14 Use the space below to make your calculations, and explain what you are doing. Please use the Excel formula =FORMULATEXT() so I can easily see the formula you used without having to 15 click on each cell. 16 Place the Graph below your calculations

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