Question: Usinh excel solver functiin to answer this question. 4. In the following assume that the CAPM holds and Coca-Cola and Netflix constitute the whole market.

Usinh excel solver functiin to answer this question.
Usinh excel solver functiin to answer this question. 4. In the following

4. In the following assume that the CAPM holds and Coca-Cola and Netflix constitute the whole market. a. Calculate three Market Portfolios using the solver function assuming risk- free rates of 0%, 1% and 2%. Give economic intuition about the Sharpe ratio. [20 marks] b. How does the composition of the market portfolio change if the risk-free rate goes up? Explain your answer. (15 marks) 4. In the following assume that the CAPM holds and Coca-Cola and Netflix constitute the whole market. a. Calculate three Market Portfolios using the solver function assuming risk- free rates of 0%, 1% and 2%. Give economic intuition about the Sharpe ratio. [20 marks] b. How does the composition of the market portfolio change if the risk-free rate goes up? Explain your answer. (15 marks)

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