APP FIL 1.

) i Total Return
0.7 0.65 21/12/2000 A B
0.58 0.7 31/12/2001 -17.14% 7.69%
0.57 0.71 231/12/2002 -1.72% 1.43%
0.65 0.76 31/12/2003 14.04% 7.04%
1.02 0.85 31/12/2004 56.92% 11.84%
1.15 0.8 30/12/2005 12.75% -5.88%
1.19 0.7 29/12/2006 3.48% -12.50%
0.8 0.6 31/12/2007 -32.77% -14.29%
0.88 0.67 31/12/2008 10.00% 11.67%
0.88 0.67 31/12/2009 0.00% 0.00%
0.77 0.65 31/12/2010 -12.50% -2.99%
0.77 0.5 30/12/2011 0.00% -23.08%
0.71 0.53 31/12/2012 -7.79% 6.00%
0.7 0.57 31/12/2013 -1.41% 7.55%
0.7 0.63 31/12/2014 0.00% 10.53%
0.95 0.72 31/12/2015 35.71% 14.29%
1.05 0.72 30/12/2016 10.53% 0.00%
1.05 1.16 29/12/2017 0.00% 61.11%
1.5 1.55 31/12/2018 42.86% 33.62%
1.6 2.45 31/12/2019 6.67% 58.06%
1.7 5.8 31/12/2020 6.25% 136.735%
1.) ii
1.) ii Expected Return 6.29% 15.44%
Variance 3.91% 11.95%
1.) iii SD 19.77% 34.57%
1.) iv Correlation 0.170805996
COVARIANCE 0.011671526
 2.)
Variance Covariance Matrix
Returns A
APP 6.29% A 0.039081071388401
FIL 15.44% B 0.01167152634558

3.)
rf 3%
Equally Weighted Portfolio
Weights
APP 0.5
FIL 0.5
Sum 1

Expected Return 10.87%

Standard Deviation 21.32%
Sharpe Ratio 0.368919809022259

4.)
Optimal Risky Portfolio
Weights
APP 0.35660466574
FIL 0.64339533426
Sum 1.00

Expected Return 12.18%

Standard Deviation 24.45%
Sharpe Ratio 0.375411397982309
50% in Risky Assets, 50% in RFR Asset
 B
0.01167152634558
0.11947653628138

6.) AND 7.)

Hypothetical Portfolios

APP FIL Rp SD
0% 100% 15.44% 34.57%
10% 90% 14.53% 31.51%
20% 80% 13.61% 28.59%
30% 70% 12.70% 25.88%
40% 60% 11.78% 23.42%
50% 50% 10.87% 21.32%
60% 40% 9.95% 19.69%
70% 30% 9.04% 18.66%
80% 20% 8.12% 18.31%
90% 10% 7.21% 18.70%
100% 0% 6.29% 19.77%
36% 64% 12.18% 24.45%

Introduce RFR Asset to reduce portfolio risk

11.)
RFR 3%
Sharpe Ratio 0.375411397982

Rp SD
Risky Asset 12.18% 24.45%
RFR Asset 3% 0
Correlation 0
 Risky Asset RFR Rp SD
0% 100% 3.00% 0.00%
5.00% 95% 3.46% 1.22%
10.00% 90% 3.92% 2.45%
15.00% 85% 4.38% 3.67%
20.00% 80% 4.84% 4.89%
25.00% 75% 5.29% 6.11%
30.00% 70% 5.75% 7.34%
35.00% 65% 6.21% 8.56%
40.00% 60% 6.67% 9.78%
45.00% 55% 7.13% 11.00%
ssets, 50% in RFR Asset 50.00% 50% 7.59% 12.23%
55.00% 45% 8.05% 13.45%
60.00% 40% 8.51% 14.67%
65.00% 35% 8.97% 15.89%
70.00% 30% 9.43% 17.12%
75.00% 25% 9.88% 18.34%
80.00% 20% 10.34% 19.56%
85.00% 15% 10.80% 20.78%
90.00% 10% 11.26% 22.01%
95.00% 5% 11.72% 23.23%
100.00% 0% 12.18% 24.45%
105.00% -5% 12.64% 25.67%
110.00% -10% 13.10% 26.90%
115.00% -15% 13.56% 28.12%
120.00% -20% 14.01% 29.34%
125.00% -25% 14.47% 30.56%
130.00% -30% 14.93% 31.79%
135.00% -35% 15.39% 33.01%
140.00% -40% 15.85% 34.23%
145.00% -45% 16.31% 35.45%
150.00% -50% 16.77% 36.68%
155.00% -55% 17.23% 37.90%
160.00% -60% 17.69% 39.12%
165.00% -65% 18.15% 40.34%
8, 9 AND 12

20.00%
18.00%
f(x) = 0.375411397982309 x + 0.03
16.00% R² = 1 EFFICIENT
FRONTIER
14.00%
12.00% OMPTIMAL
PORTFOLIO
10.00%
RISK AND
8.00% RETURN
6.00%
Linear (RISK
4.00% AND RETURN)

2.00%
0.00%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%
 EFFICIENT
FRONTIER

OMPTIMAL
PORTFOLIO

RISK AND
RETURN

Linear (RISK
AND RETURN)

00%