Questioe I$4$: Asset Allocation

You initially decide to construct an imvestment portfolio where $65\%$ of your funds will be invested in the bedge fund while $35\%$ of your funds will be invested in treasury bills. The mutual fund has an expected return of $E(r_p)=0\mathrm{.}21$ with a standard deviation of ${}_p=0\mathrm{.}30.$ The treasary bills have return of $r_r=0\mathrm{.}05.$

$($a$)$ Calculane the expected return $E(r)$ and standard deviation $({}_i)$ of this overall investment portiolio.

$($b$)$ Graph the capital allocation line $($CAL$)$ for the overall investment portfolia. Be sare to properly label the x and y axis. Clearly identify the y $-$intercept oe the graph. Label the expected return$-$standard deviation of the overall investment portfotio found in Patt $(t)$ es Point $"A^{\text{'}\text{'}}"$ on your grapth.

$($c$)$ Calculate the Sharpe ratio of the overall investment portfolio