Using 20-years of annual data across five asset classes provided inAppendix 1(Table 1) and in accordance with the requirements below, you are tasked to report that addresses the following:

1. Briefly discuss the five asset classes in Table 1 ofAppendix 1. Using the data from Table 1, calculate the Arithmetic Mean (AM), Geometric Mean (GM) and Standard Deviation () of returns of each of the five asset classes. Briefly, discuss the risk-return characteristics of each asset class with reference to these measures.
2. Construct an efficient portfolio. Assume the risk-free rate over the period is 2.50%. Calculate the Efficient Frontier and Capital Allocation Line (CAL) for the five asset classes using the Excel Solver Tool (see prescribed textbook Chapter 7, Appendix A for guidance). You will also need to calculate and provide the 'Bordered Covariance' and 'Correlation Matrices'. Discuss the implications of these five assets on efficient frontier and CAL.
3. Synthesise the various Modern Portfolio Theory (MPT) models in the four credible source references listed in the Background section above to provide an in-depth and critical discussion of your results from parts a. and b. Why (or why not) is minimum-variance portfolio still liked by academics and practitioners? Why is MPT normative?