Finance class: Risk Management and Portfolio Analysis
Could you help me to solve the problem step by step and use can you the formula sheet (Given)?

 

Formula sheet:

 

 

 

Transcribed Image Text:

U = E(r) - Ao rcyrp (1-y) rf E(rc) = yE (rp) + (1 y) rf == = E(rp) -rf S = E(rc) = rf + y [E (rp) - rf] = y 0/ E(rp) -rf y* E (rc) = r + [E (rp) r]; = rp WDD + WERE U = E(r) - Ao rcyrp (1-y) rf E(rc) = yE (rp) + (1 y) rf == = E(rp) -rf S = E(rc) = rf + y [E (rp) - rf] = y 0/ E(rp) -rf y* E (rc) = r + [E (rp) r]; = rp WDD + WERE