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Q21 Suppose we only have two stocks available in the market. The table below presents...

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Q21 Suppose we only have two stocks available in the market. The table below presents the yearly returns on stocks X and Y for a three-year period Please use the information above for Q21(a) to Q21(e) Please round your answer to 4 decimal places (e.g., if your answer is 0.12341 , please report it as 0.1234 ) Q21(e). Suppose the risk-free rate is 3\%. Compute the slope of the capital allocation line for the optimal risky portfolio. Suppose an investor's utility function is U=E(r)0.5A2 with A=30, how does she allocate portfolio weights among X,Y, and risk-free assets to maximize utility? (9 marks)

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