Question: The information contained in the table below shows the expected return and standard deviation for the market and Treasury Bills. Market Data Treasury Bills

The information contained in the table below shows the expected return and

The information contained in the table below shows the expected return and standard deviation for the market and Treasury Bills. Market Data Treasury Bills S&P 500 Rate of Return Standard Deviation 4.25% 0.00% 12.00% 21.00% Required: Using the information in the table above and the varying risk aversions below, please calculate allocations to the risky and risk-free assets. (Use cells A5 to C6 from the given information to complete this question.) 2 B Risk Aversion Percent Allocated to the Market (S&P 500) Percent Allocated to Treasury Bills 4 4.00 5 2.00 6 1.50 7 8 9 + 0 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 1 Nothing in this area will be graded, but it will be submitted with your assignment. 22 23 24

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