Question: Plot the curve for the risks and expected returns of the optimal portfolio combinations in the 4-asset case detailed in Exhibit 6, namely: US Equities,

Plot the curve for the risks and expected returns of the optimal portfolio combinations in the 4-asset case detailed in Exhibit 6, namely: US Equities, Foreign Equities, Bonds, and REITs.

Exhibit 6 Array of Optimal Portfolios with Four Asset Classes: U.S., Foreign, Bonds, and REITs
Asset Allocation
Portfolio Expected Ret. Stdev US Equity Foreign Equity Bonds REITs
1 7.00% 8.93% 0.000 0.102 0.678 0.220
2 7.50% 8.66% 0.000 0.170 0.605 0.225
3 8.00% 8.57% 0.000 0.239 0.532 0.229
4 8.50% 8.66% 0.004 0.303 0.460 0.232
5 9.00% 8.89% 0.059 0.325 0.400 0.216
6 9.50% 9.24% 0.114 0.347 0.340 0.199
7 10.00% 9.69% 0.169 0.369 0.280 0.183
8 10.50% 10.23% 0.224 0.391 0.219 0.166
9 11.00% 10.85% 0.278 0.412 0.159 0.150
10 11.50% 11.52% 0.333 0.434 0.099 0.133
11 12.00% 12.25% 0.388 0.456 0.039 0.117
12 12.50% 13.04% 0.465 0.481 0.000 0.054

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