The risk-free asset has a 3.5% expected return. You have put together a risky portfolio with an expected return of 13.0% and a standard deviation of 25.0%. Your risk aversion is A = 2.4 and Hannah, the retiree who lives next door, has a risk aversion of A = 4.20. 4 pts

What is the expected return, standard deviation, and Sharpe ratio of your optimal complete portfolio using your risky portfolio?

If an investor had an optimal complete portfolio with weights (123.58%, -23.58%) using your risky portfolio, what would be their risk aversion parameter, A?

Suppose Hannah from next door drops by one day to share a risky portfolio she has constructed which has an expected return of 10.5% and a standard deviation of 20.0%. Is this risky portfolio superior to the one you have? Explain/demonstrate.