Consider the following information: • A risky portfolio contains two risky assets. • The expected return and...

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Finance

Consider the following information:
• A risky portfolio contains two risky assets.
• The expected return and standard deviation for the firstrisky asset is 18% and 25%, respectively.
• The expected return and standard deviation for the secondrisky asset is 18% and 25%, respectively.
• The correlation between the two risky assets is .55.
• The expected on the 10-year Treasury bond is 3%.

Find the optimal complete portfolio. Assume the investor’slevel of risk aversion is 3. Make sure to provide the weights,excepted return, and standard deviation of the portfolioreturns.

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Consider the following information:• A risky portfolio contains two risky assets.• The expected return and standard deviation for the firstrisky asset is 18% and 25%, respectively.• The expected return and standard deviation for the secondrisky asset is 18% and 25%, respectively.• The correlation between the two risky assets is .55.• The expected on the 10-year Treasury bond is 3%.Find the optimal complete portfolio. Assume the investor’slevel of risk aversion is 3. Make sure to provide the weights,excepted return, and standard deviation of the portfolioreturns.