Question: Provide formula to plot the CAL using the Treasury Bill. Assume the annual T-bill rate is 12% Portfolio weights Portfolio Number AOL BUD KO TWA
Provide formula to plot the CAL using the Treasury Bill. Assume the annual T-bill rate is 12%
| Portfolio weights | ||||||||||
| Portfolio Number | AOL | BUD | KO | TWA | sum of weights | Var | SD | Exp Ret | Sharpe | T-Bill |
| 1 | 1.00 | 0.00 | 0.00 | 0.00 | 1.00 | 0.05 | 0.227 | -7.79% | -0.36 | 0.01 |
| 2 | 0.00 | 1.00 | 0.00 | 0.00 | 1.00 | 1.02 | 1.011 | -1.66% | -0.02 | 0.01 |
| 3 | 0.00 | 0.00 | 1.00 | 0.00 | 1.00 | 0.03 | 0.160 | -0.41% | -0.05 | 0.01 |
| 4 | 0.00 | 0.00 | 0.00 | 1.00 | 1.00 | 0.03 | 0.173 | 3.30% | 0.17 | 0.01 |
| 5 | 0.25 | 0.25 | 0.25 | 0.25 | 1.00 | 0.09 | 0.298 | -1.64% | -0.07 | 0.01 |
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