You are provided a client's investment portfolio as follows: Risky assets Allocation Client Portfolio Asset Allocation 45% 40% 70% 40% 60% 35% 60% 35% 50% 30% 25% 40% 25% 40% 20% 30% Client Portfolio Asset Allocation 15% 20% 10% 10% 5% 09 0% Risky Assets Risk Free Asset Emaar Deyaar ENBD (a) The current risk free rate based on a three-month U.S. Treasury bill is 4%. We are assuming the U.S. Treasury bill rate is a good proxy for the UAE risk free rate. The return of the risky portfolio is 40% with a risk of 30% (b) Estimate the risk and return of the client's portfolio. [2 marks] (c) Estimate the proportions being allocated to each of the risky asset relative to the whole portfolio, including the risk free asset. [2 marks] (d) If your client wants to have a maximum whole portfolio risk of 10%, estimate the Sharpe measurement of his/her portfolio? [2 marks] (e) Analyse the effect of leveraging on a client's investment return and risk. Explain your answer. [2 marks) (f) Would you recommend the above portfolio to a client in the current UAE environment? Explain your answer. [2 marks]