Consider the following information: • A risky portfolio contains two risky assets. • The expected return...

Consider the following information:

• A risky portfolio contains two risky assets.

• The expected return and standard deviation for the first risky asset is 18% and 25%, respectively.

• The expected return and standard deviation for the second risky asset is 18% and 25%, respectively.

• The correlation between the two risky assets is .55.

• The expected on the 10-year Treasury bond is 3%.

Find the optimal complete portfolio. Assume the investor’s level of risk aversion is 3. Make sure to provide the weights, excepted return, and standard deviation of the portfolio returns.

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Have solved it in excel and uploaded the picture in JPEG format:

jeff jeffy answered 7 months ago

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