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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. Attach the Excel file to your submission in Canvas. Identify the optimal compete 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. (30 pts)
I'm looking for how to graph the CAL and the indifference curve.
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