Finance investments homework problem

Fcrapre_Fuvaxyr
timer Asked: Nov 1st, 2018

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ONLY BID IF YOU KNOW HOW TO DO THE QUESTION PLEASE !!!!!!!!!!!!!!!!!!!!!!! I NEED SOMEONE PROFICIENT IN FINANCE AND INVESTMENTS

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Portfolio Choice with two Risky assets and one risk-free asset An investor has $10,000. He plans to invest the money in (1) a corporate bond, (2) a stock, and (3) the risk-free T-bill. The table below provides these assets’ expected returns and standard deviations: Bond (D) Stock (E) T-Bill (F) Expected Return 6% 12% 3% Standard Deviation 8% 16% 0 The coefficient of correlation between the bond and stock is 40%. (1) If the investor invests 30% in bond, 40% in stock, and 30% in T-bill, what is the expected return and standard deviation of his portfolio? (25%) (2) What are the optimal weights of the bond and stock in the portfolio of risky assets? (25%) (3) If the investor has a risk aversion A=6, what are the optimal share of the money that he invests in the risky asset portfolio? (25%) (4)How many dollars should the investor invest in the bond, the bond, and the T-bill, respectively? (25%)
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