Question: For questions 3 through 8 use the following data: You have the following two assets available for you to invest your $50,000 in. You can



For questions 3 through 8 use the following data: You have the following two assets available for you to invest your $50,000 in. You can invest as much as you want in either asset, but you are NOT allowed to short either investment, and you MUST be fully invested. For all calculations use 4 decimal places. Assume the risk free rate is 0%. Correlation coefficient for Asset A and Asset B returns: .40 If your goal is to maximize the expected return on your portfolio, how much of yo portfolio should be invested in Asset A ? Question 6 If your goal is to have the beta of your portfolio exactly equal to the market, how much of your portfolio should be invested in Asset B? If your goal is to maximize the Sharpe ratio of your portfolio, hov portfolio should be invested in Asset A ? Question 8 What is the highest Sharpe ratio attainable with your portfolio
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