PLEASE HELP

= PROBLEM A. Suppose that you are managing the risky-portfolio, with E(P) = 18%, and op 28%. The return on the T-bills is rF=5%. a. If the risk aversion's degree of your client is 3. what is the optimal portfolio he chooses to invest? PROBLEM B Suppose that you manage an active mutual fund, PF with expected return 17% and standard deviation 25%. Your client may as well choose to invest in a passive portfolio, M. of a risky portfolio of S&P 500 stock index, which yields an expected rate of return of 13% with a standard deviation of 23%. The risk-free rate is 5%. a) If the borrowing rate for your client is 8%, illustrate your client's CAL, with explanations and calculations /show it graphically. What is the slope of CAL's part, at which the client may borrow? b) What should be the degree of risk aversion, in order that the client will lend? Explain. c) If the client chooses to invest in the passive portfolio, M, what is the proportion, y, that he would select? = PROBLEM A. Suppose that you are managing the risky-portfolio, with E(P) = 18%, and op 28%. The return on the T-bills is rF=5%. a. If the risk aversion's degree of your client is 3. what is the optimal portfolio he chooses to invest? PROBLEM B Suppose that you manage an active mutual fund, PF with expected return 17% and standard deviation 25%. Your client may as well choose to invest in a passive portfolio, M. of a risky portfolio of S&P 500 stock index, which yields an expected rate of return of 13% with a standard deviation of 23%. The risk-free rate is 5%. a) If the borrowing rate for your client is 8%, illustrate your client's CAL, with explanations and calculations /show it graphically. What is the slope of CAL's part, at which the client may borrow? b) What should be the degree of risk aversion, in order that the client will lend? Explain. c) If the client chooses to invest in the passive portfolio, M, what is the proportion, y, that he would select