Question: Based on the data and the optimal risky portfolio above, calculate the following optimal complete portfolio, comprised of a bond and equity fund. for a

Based on the data and the optimal risky portfolio above, calculate thefollowing optimal complete portfolio, comprised of a bond and equity fund. for

Based on the data and the optimal risky portfolio above, calculate the following optimal complete portfolio, comprised of a bond and equity fund. for a client looking to invest $100,000. There are two classes of funds that you are able to purchase for your clients portfolio, class A and class B funds. The class A funds have a front-end load fee of 4% and an annual operating expense fee of 1%. The class B funds have no front-end load fee and an annual operating expense fee of 1.5%. The client has a risk aversion score of 3.5, and a holding period of 14. These are the items that need to be calculated:

  1. Ending dollar amount in risk-free
  2. Ending dollar amount risky (Class A)
  3. Ending dollar amount risky (Class B)
  4. Ending dollar amount total (Class A)
  5. Ending dollar amount total (Class B)
  6. Expected returns from Risky Portfolio

\begin{tabular}{|l|r|r|r|r|} \hline Risk-free rate & 0.04 Vanguard Bond Fund (Bonds) & & Fidelity Fund (Equity) \\ \hline & & & 0.090799 \\ \hline Expected Return & & 0.05126 & 0.100693333 & 0.216145786 \\ \hline Standard Deviation & 0.247876701 & 0.131824617 & 0.909201 \\ \hline Correlation Coefficient & & & \\ \hline \end{tabular}

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