Question: Use the data in Exhibit 5-3 to address Problems 1-3 EXHIBIT 5-3 Forecasts Investors Forecasts Asset Allocation Expected Return Standard Deviation of Return A 11.5%

Use the data in Exhibit 5-3 to address Problems 1-3 EXHIBIT 5-3 Forecasts Investors Forecasts Asset Allocation Expected Return Standard Deviation of Return A 11.5% 18% B 8 14 C 6 10 1) On the scale discussed in the text, Robert Langlands risk aversion (RA) is 5. Recommend an asset allocation for him.

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