This assignment contains problems from Chapter 5, 6 and 7. You should provide detailed solutions. Just providing a number as answer to a problem will not earn you any point even though that number is correct. If you write your solutions step by step with details (such as from the equations used until obtaining the final number). even if your final answer is not correct you would get some points if some of your prior steps are correct. Suppose your expectations regarding the stock market are as follows: Use Equations 5.11 and 5.12 to compute the mean and standard deviation of the HPR on the stock Round your answers to 2 decimal places. Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(r_p)= 11%, sigma_p = 11%, r_r = 5% Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 8%. What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset What will be the standard deviation of the rate of return on her portfolio? Round your answers to 2 decimal places. Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be no more than 12%. Which client is more risk averse, why