solve in Q4 a b c in 40 mins i will thumb up

Question 4 (20 points) The following table presents data of two portfolios, traded in the market: Portfolio A Portfolio B Market portfolio Expected return Standard deviation Beta 14.5% 50% 1.25 7% 30% 0.5 a. Calculate the expected return of the market portfolio and the risk-free rate. Answer: The expected return of the market portfolio is %_ The rf rate is % b. Which one of the two portfolios is efficient? Answer: The efficient portfolio is Answer: She will invest $ invest $ invest $ --- Page 8 of 12 --- ? 40% ? An investor has $100,000 to invest and wants to receive an expected return of 10%. c. How can she earn the target expected return? in portfolio A. in portfolio B. in risk free asset. rf asset ? ? ? Question 4 (20 points) The following table presents data of two portfolios, traded in the market: Portfolio A Portfolio B Market portfolio Expected return Standard deviation Beta 14.5% 50% 1.25 7% 30% 0.5 a. Calculate the expected return of the market portfolio and the risk-free rate. Answer: The expected return of the market portfolio is %_ The rf rate is % b. Which one of the two portfolios is efficient? Answer: The efficient portfolio is Answer: She will invest $ invest $ invest $ --- Page 8 of 12 --- ? 40% ? An investor has $100,000 to invest and wants to receive an expected return of 10%. c. How can she earn the target expected return? in portfolio A. in portfolio B. in risk free asset. rf asset