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HW1 Monetary Analysis 2022
HW1 Monetary Analysis 2022
g
150
fi t
It
10,000
11
O
O only onesoldunder Fu
O
3 0 0.05
20
i 3000
O
120
R TE t
7 o.rs
0
a
p yes
t
fist Fist Em
I 857 25
p
857251
100
110,9 428
b
P t
tr t
1092.97
100
719.29
0
0
R 4
Stock Bonds commodities You wouldchoose
a
0.2
6.2 commodities
COS d s
0.25 0.16 Tco.zs 0.17 to maximize
O S x 0.05
0.2s x 0.41 cars O
g 0.25 0.04 expected return
Tons x 0.06
I 0.2s x 0.04 I co os x o
11.759
bonds because
risk averse you would choose
b If you are
than the rateof
their rate of return range is amaker
return range for stocks
C Ponds commodities
Stocks
0.1 0.33 x 0.117s
0.1 T 0.33
0.33
expected return of equal portfolio
10.48