In this assignment, we will construct the best possible portfolio for an investor using one risky asset and the riskless asset. For the purposes of this assignment, the risk free rate is 3.5%. I have provided you with historical data about the returns of the risky asset. The column yearly.return contains yearly returns for each year in our sample, formatted as decimals. This means that a 10% yearly return would appear as 0.10.

• Using the historical data provided, estimate the mean and standard deviation of the returns of the risky asset
• Create a function that calculates the best possible asset allocation between the risky and riskless assets
• Using this function, find the best possible asset allocation between the risky asset from Step 1 and the riskless asset for an investor with a coefficient of risk aversion of 3.8. Include the answer to this question as a comment in your script
• Make sure to comment your script and include the name of everyone in your group in the comments
• Upload your script

The data file is as follows:

year	yearly.return
1	0.044167703
2	-0.122609855
3	0.048455846
4	0.133005757
5	0.076108833
6	-0.100619474
7	0.153615252
8	0.112402436
9	0.064549319
10	0.1013993
11	0.104893899
12	-0.04540677
13	0.068177429
14	0.174584659
15	0.109851907
16	-0.054249433
17	0.097454743
18	0.118990635
19	-0.012467174
20	0.130864494
21	-0.05963019
22	0.026458311
23	0.075171413
24	-0.005180644
25	0.151264843
26	-0.096549251
27	0.227031943
28	0.160261278
29	0.069340954
30	0.003921066
31	-0.011005575
32	0.170348397
33	0.079161245
34	0.118508845
35	0.086604351
36	-0.005178805
37	0.1397996
38	0.158364183
39	-0.035129626
40	0.180135662
41	0.248120231
42	0.048009448
43	0.179552212
44	0.087225884
45	0.086939439
46	0.051143664
47	0.144636595
48	-0.004347357
49	0.027226669
50	0.074919203
51	0.078793944
52	-0.004076015
53	-0.002538885
54	0.255345816
55	0.037491048
56	0.162749379
57	-0.028832659
58	0.119549913
59	0.036687213
60	0.187355174
61	0.039118284
62	0.113566195
63	0.207479817
64	0.010861519
65	-0.00392313
66	-0.077849844
67	-0.047931832
68	-0.030394178
69	0.057285299
70	0.023233964
71	-0.049797887
72	0.001929378
73	-0.007880444
74	0.132201734
75	0.022923776
76	-0.023030194
77	0.167586428
78	0.13503774
79	-0.056501452
80	0.15430047
81	-0.159462374
82	0.046813312
83	0.146690704
84	0.082098984
85	0.052608886
86	0.043228694
87	-0.012838943
88	0.0346096
89	0.053766006
90	0.136161435
91	-0.104044393
92	0.146941607
93	-0.041687615
94	0.118926577
95	0.103751785
96	-0.013749125
97	0.100642545
98	0.083854079
99	-0.094222404
100	0.034158703