Securities Risk-free rate o Sharpe ratios Expected Return and Volatility E(r) S1 5.0% 3.0% S2 4.0% 3.5% S3 6.0% 3.6% 1.45 0.96 1.49 S1 Variance-covariance matrix S S1 S2 0.00090 0.00047 0.00047 0.00123 0.00054 0.00003 S3 0.00054 0.00003 0.00130 S2 S3 Now that you have filled the Smatrix, follow the matrix solution procedure discussed in Module 6 to obtain the optimal portfolio P*. Enter the weights obtained for each of the securities, with three decimal places. Inverse of the Variance-Covariance Matrix Excess Return Vector Z Vector Optimal Portfolio s? R-Rf weights. w Z Ws1 W2 W3 Sum 0 0.000 Enter the Sharpe ratio for p*, with two decimal places. Hint: recall that Expected return of a portfolio is the weighted average of the expected returns, and variance of a portfolio = WT.S-w, where w is the (column) vector of portfolio weights and wt is its transpose. Expected return of p* Variance of p* o of P* Sharpe ratio for P* Securities Risk-free rate o Sharpe ratios Expected Return and Volatility E(r) S1 5.0% 3.0% S2 4.0% 3.5% S3 6.0% 3.6% 1.45 0.96 1.49 S1 Variance-covariance matrix S S1 S2 0.00090 0.00047 0.00047 0.00123 0.00054 0.00003 S3 0.00054 0.00003 0.00130 S2 S3 Now that you have filled the Smatrix, follow the matrix solution procedure discussed in Module 6 to obtain the optimal portfolio P*. Enter the weights obtained for each of the securities, with three decimal places. Inverse of the Variance-Covariance Matrix Excess Return Vector Z Vector Optimal Portfolio s? R-Rf weights. w Z Ws1 W2 W3 Sum 0 0.000 Enter the Sharpe ratio for p*, with two decimal places. Hint: recall that Expected return of a portfolio is the weighted average of the expected returns, and variance of a portfolio = WT.S-w, where w is the (column) vector of portfolio weights and wt is its transpose. Expected return of p* Variance of p* o of P* Sharpe ratio for P*