QUESTION 5. Now you want to combine the highest Sharpe ratio portfolio (or Optimum risky Portfolio O) you found out above with a risk-free asset to create a Portfolio C for your client to get an even more efficient portfolio. The risk-free asset, the one-year Global Government bond, provides a risk-free annual rate of return of 0.25%.

How much weight (your clients wealth distribution) should you put into Portfolio O (the risky asset) and in the risk-free asset in the above situation to create Portfolio C? (1 mark)