61 quarterlv return data is provided for three assets: US Equities, Emerging Market {EM} Equities and Developed Markets [EAFE] ex US are provided in Excel le "Test 2.xlsx" in tat: "Risk Parity". [Please note that this is the same data set as for the question on MV Optimization]. Create a risk paritv portfolio and calculate the allocation of each asset in the risk parity portfolio. Which of the following allocations is the correct answer? Q Allocation to Emerging Markets is 25%; allocation to Developed Market ex US is 35% and allocation to the US market is 40%. Q Allocation to Emerging Markets is 31%; allocation to Developed Market ex US is 17% and allocation to the US market is 52%. O Allocation to Emerging Markets is 45%; allocation to Developed Market ex US is 25% and allocation to the US market is 30%. Q There is no correct allocation provided as an answer for this question IE Allocation to Emerging Markets is 3?%; allocation to Developed Market ex US is 23% and allocation to the US market is 40%. Quarter EM EAFE US EW Portfolio 1 -0.64 4.16 7.67 3.73 2 -1.36 4.05 5.67 2.78 3 6.04 2.92 6.44 5.13 4 4.10 1.64 3.74 3.16 5 -3.69 -0.05 2.27 -0.49 -0.59 1.65 7.28 2.78 8.13 -1.51 1.13 2.58 8 8.21 12.27 15.84 12.10 9 -9.40 -0.64 8.96 -0.36 10 -19.26 -8.08 1.66 -8.55 11 6.01 13.79 12.88 10.88 12 -26.92 1.12 2.35 -7.81 13 -24.86 -15.26 -16.28 -18.78 14 16.54 18.85 22.68 19.34 15 11.72 1.45 3.83 5.66 16 21.83 2.58 7.53 10.63 17 -5.29 4.36 -7.53 -2.82 18 22.67 15.75 14.24 17.53 19 2.39 -0.05 4.89 2.41 20 -10.72 -3.98 -2.01 -5.56 21 -13.93 -8.35 -0.77 -7.67 22 -14.39 -2.65 -8.96 -8.66 23 -7.10 -15.51 -14.47 -12.35 24 5.82 0.80 8.81 5.14 25 -25.05 16.66 18.01 -19.89 26 24.04 7.54 11.50 14.35 27 10.46 1.01 0.90 4.12 28 -8.73 -2.23 -16.35 -9.09 29 -16.40 -21.95 -12.95 -17.08 30 8.51 6.14 4.13 6.2630 8.51 6.14 4.13 6.26 31 -5.52 -7.55 -1.93 -4.99 32 21.67 16.80 14.63 17.68 33 13.13 9.89 4.81 9.27 34 15.41 13.91 9.53 12.93 35 9.88 5.60 2.84 6.10 36 -10.50 -0.86 -0.39 -3.91 37 9.13 1.08 0.70 3.63 38 14.52 12.58 7.17 11.41 39 3.23 0.50 -1.85 0.63 40 3.37 -1.37 3.16 1.72 41 16.10 9.81 3.59 9.82 42 7.05 4.82 2.02 4.63 43 13.10 9.90 5.26 9.41 44 -4.59 0.33 -1.31 -1.85 45 3.68 4.13 3.36 3.72 46 15.90 9.18 7.27 10.78 47 2.21 4.28 1.54 2.67 48 15.39 6.97 6.45 9.59 49 13.39 2.07 1.82 5.75 50 2.53 2.31 -4.79 -1.52 51 -10.76 -8.32 -6.55 -8.54 52 -3.35 -4.53 -4.83 -4.23 53 -29.67 -20.31 -10.05 -19.99 54 -31.94 -23.16 -25.26 -26.76 55 2.70 -13.50 -9.80 -6.86 56 29.56 23.01 14.49 22.33 57 17.26 14.58 11.80 14.53 58 8.51 4.02 8.46 6.99 59 4.11 2.12 6.54 4.25 60 -11.29 -16.72 -13.17 -13.71 61 18.61 16.48 11.73 15.59EM EAFE US EW Portfolio Average Return 1.98 1.26 1.71 1.65 Volatility 14.01 10.06 9.24 10.40 Correlation EM EAFE US EW Portfolio EM 1.00 EAFE 0.83 1.00 US 0.76 0.87 1.00 EW Portfolio 0.94 0.95 0.92 1.00 Covariance EM EAFE US EW Portfolio EM 196.17 116.74 98.41 137.11 EAFE 116.74 101.20 81.32 99.75 US 98.41 81.32 85.42 88.39 EW Portfolio 137.11 99.75 88.39 108.20 Allocation EM EAFE US Total Weight 0.33 0.33 0.33 1.00 Beta EM EAFE US Weight 1.27 0.92 0.82 MCR EM EAFE US Total 4.38 3.19 2.83 10.40