Question: Please show steps/ formulas clearly, and please do not use excel. Thanks. (5 pts) We have a financial market with one risk-free and two risky

Please show steps/ formulas clearly, and please do not use excel. Thanks.

(5 pts) We have a financial market with one risk-free and two risky assets. Assume that -: 0. 1, 2-0. 12. 1-0.05, 2-0.10 and R-5%. You are allowed to invest in the risk-free asset and only one of the risky assets. Which of the risky assets would you choose? What if the risk-free return was R-10%? (Hint: Compare the efficient frontiers.)

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