You have the following assets available to you for investment:

Asset	Alpha	Beta with respect to market index	Idiosyncratic variance
1	0.02	0.9	0.33
2	0.005	1.6	0.19

In addition, there is the market portfolio, which has an expected return of 8.7% and a variance of 0.14, and the riskless asset, which returns 3.1%, weight of asset 1 = 69.74% the proportion of the optimal risky portfolio that is composed of the market portfolio is 78.222%, and the beta of the actively managed portfolio is 1.024

3D. What is the optimal risky portfolio for these assets, using the index model? 5 points

3E. If you have a coefficient of risk aversion of 2.4, what is the certainty equivalent of this risky portfolio? 5 points