Question: Question 2. (20 marks) Continue with the data from Question 1 and consider a tangency portfolio. . Formulate the Lagrangian function and give its partial

Question 2. (20 marks) Continue with the data from Question 1

Question 2. (20 marks) Continue with the data from Question 1 and consider a tangency portfolio. . Formulate the Lagrangian function and give its partial derivatives only. . For the range of tangency portfolios given by ry = 50bps, 100bps, 150bps, 175bps optimal compute allocations (ready formula) and on. Present results in a table. . Plot the true Efficient Frontier in the presence of risk-free earning asset for rf = 100bps, 175bps and specifically identify its shape

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