Question: Hello, I need some HW help as soon as possible. This question was difficult for me, please help asap! Investment set includes a risky fund

Hello, I need some HW help as soon as possible. This question was difficult for me, please help asap!

Investment set includes a risky fund (A), a passive fund (B), and T-bills. The data for the three are below:

	Expected Return	Standard Deviation
A	20%	60%
B	10%	20%
Tbill	2%	0%

The correlation coefficient between A and B is 0.

a. Find the Sharpe ratio maximizing portfolio (O), its expected return, standard deviation, and Sharpe ratio. Compare with the Sharpe ratio of A and B. b. Find the slope of the CAL generated by T-bills and portfolio O. c. Suppose an investor places 25% of the complete portfolio in the risky portfolio O and the remainder in T-bills. Calculate the composition of the complete portfolio, its expected return, standard deviation, and Sharpe ratio.

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