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Risk Free Rate is 5 % and other numbers needed are in the table, Solve these 5 problems through excel: 1 . Choose 1 0
Risk Free Rate is and other numbers needed are in the table, Solve these problems through excel:
Choose levels of expected returns. For each return level, use Solver to find the portfolio of the three risky assets that has the lowest portfolio risk. The levels are:
Plot the efficient frontier using the portfolios found above.
Find the optimal risky portfolio.
Suppose that your client wishes to achieve an expected return of on the complete portfolio. How should you allocate her investment money across the assets to achieve this objective?
Suppose that your client is willing to take on a risk level of for the complete portfolio. How should you allocate her investment money across the assets to achieve this objective?
Risk and return characteristics of three risky assets:
Here are the formula for computing asset portfolio's expected return and risk:
Var
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