Please attempt the question if you can solve all the questions, please do not attempt if you are going to solve only 1 part. i WILL DOWNVOTE AND REPORT IF 1 ANSWERED.

Greta, an elderly investor, has a degree of risk aversion of A=3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S\&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S\&P 500 risk premium is estimated at 8.4% per year, with a SD of 23.4%. The hedge fund risk premium is estimated at 13.4% with a SD of 38.4%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual returns on the S\&P 500 and the hedge fund in the same year is zero, but Greta is not fully convinced by this claim. Calculate Greta's capital allocation using an annual correlation of 0.3. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) RIMARY POST QUESTIONS: (1&2) For the potential investment: Calculate the following: Carry all values out 2 decimal places - ex. 3.45% a) EXPECTED RETURN = b) STANDARD DEVIATION = c) COEFFICIENTOFVARIATION= d) RANGEOFRETURNS=68% using the Empirical Rule Refer to PDF Handout 95% 99%