Question: Given E[TD] = 12% and E[r] = 17% D = 15% and E = 20% PDE = -0.3 and rf = 5% (a) Calculate

Given E[TD] = 12% and E[r] = 17% D = 15% and

Given E[TD] = 12% and E[r] = 17% D = 15% and E = 20% PDE = -0.3 and rf = 5% (a) Calculate the weights of debt and equity in the minimum-variance portfolio. (b) Calculate the corresponding expected return, risk (i.e., standard deviation), and the Sharpe ratio of the minimum-variance portfolio. = (c) Given the risk portfolio as the minimum-variance portfolio and A 4, construct the complete portfolio. That is, how much percentage the investor wants to invest in the risk-free asset and how much percentage he/she wants to invest in the risk asset. Then, calculate the expected return, standard deviation, and the Sharpe ratio of the complete portfolio. [Hint:y* = E[p] Activate Windows Go to Settings to activate Windows

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