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The market portfolio represented by the S&P 500 has a 12% expected return & 20% risk. The risk-free rate = 5% & the investors risk
The market portfolio represented by the S&P 500 has a 12% expected return & 20% risk. The risk-free rate = 5% & the investors risk aversion coefficient A = 2.5. Use Excel to plot the CAL and the indifference curve. Identify the optimal complete portfolio on the graph. Hint: There are several steps to solving this, which should be done in Excel. First, find the utility of the optimal complete portfolio. please help me calculate this problem in Excel step by step. also if you can show a screenshot of the Excel calculation? identify the optimal portfolio on the graph find the utility of the optimal complete portfolio
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