You are charged with managing an investment fund of $X million for 3 years. Your investment objective is to attain a terminal wealth of $15 million at the end of the investment period. The annual risk-free rate is 6%, compounded semi-annually (that is, 3% for every 6-month period).

(a)If you wish to achieve a risk-free investment objective, how much should be the initial fund balance $X?

(b)Suppose the initial fund is $10 million and you are going to invest in one of the three risky assets, W, X, or Y. Suppose their price paths over the investment horizon are known as follows:

Time	Asset W	Asset X	Asset Y
0	$10.0	$10.0	$10.0
1	12.5	12.0	11.0
2	13.0	13.5	12.7
3	12.8	13.0	13.8
4	14.0	13.9	14.5
5	13.0	14.3	14.2
6	14.2	13.6	14.0

Which of the three risky assets would enable you to accomplish your investment objective? Explain how.