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You have constructed the following portfolio. (Note that the percentages between parentheses represent the weights.) Assume that the expected return and risk on the overall

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You have constructed the following portfolio. (Note that the percentages between parentheses represent the weights.) Assume that the expected return and risk on the overall portfolio are respectively equal to 12% and 20% The risk-free rate is 7% XRP (50%) Risky (60%) FLOKI (30%) Overall Portfolio SHIBA (? %) Risk-Free (40%) T-Bills (100%) 1. Determine the proportion that you have invested in the financial asset "SHIBA" in the overall portfolio (risky and risk-free assets).* OA) 12% O B) 20% C) 40% D) 60% O E) None of the above 2. Assume that your degree of risk aversion is A=4. What proportion, y, of the total investment should be invested in the risky assets? * O A) 12% O B) 31.25% C) 40% D) 131.25% OE) None of the above 3. What is your risk on the optimized portfolio? * A) 25% B) 5% O C) 8.33% O D) 6.25% E) None of the above

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