The riskless rate is 5.1%. Risky Asset 1 has a mean return of 11.3% and a standard deviation of 23.2%. Risky Asset 2 has a mean return of 6.9% and a standard deviation of 18.7%. The correlation between Risky Asset 1 and 2 is 24.5%. Graph the Efficient Trade-Off Line and the Risky Asset Trade-Off Curve.

19. The riskless rate is 4.7%. There are five risky assets. Their expected returns are 11.3%, 7.8%, 9.2%, 13.6%, and 10.5%. Their standard deviations are16.6%, 24.3%, 19.7%, 22.9%, and 18.3%. All of the correlations are 0.0%, except the correlation between risky assets 2 and 5 which is 18.2%. Graph the Efficient Trade-Off Line and the Risky Asset Trade-Off Curve and a bar chart of the portfolio weights of the optimal (tangent) portfolio.

Answer rating: 100% (QA)

To graph the Efficient TradeOff Line and the Risky Asset TradeOff Curve as well as the optimal portf... View the full answer