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What is the expected return

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1. What are the investment proportion in the minimum variance of the two risky funds and what is the expected return and risk of this portfolio?

2. Tabulate and draw the investment opportunity set of tge two risky funds( Use investment proportions for the stocks zero to 100% in increment of 20%)

3. What are the investment proportions in optimal risky portfolio of the two risky assets, and what is the expected return and risk of this portfolio?

4. Draw the Capital Allocation Line( CAL) and Efficient Frontier. Locate global minimum variance portfolio and optimal risky portfolio on Efficient Frontier.

5. Assume that the portfolio offers returns of 14% and it lies on the Capital Allocation Line.

A. What is the risk of the portfolio?

B. Wgat is the proportion invested in T-Bond and each of the stocks.

6. How much will the portfolio manager invest in eaxh of the stocks and T-Bond if the risk aversion coefficient is 5? Find out the risk and return of that portfolio and locate risk and return on the Capital Allocation Line draw foe the requiremen

Reference no: EM133120764

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