financial questions

profilespousesy
questions.docx

1. Go to the spreadsheet that I attached called Solving for M and changing the risk-free rate 2015. You will see how I used matrix multiplication to solve for the weights in the M portfolio given a risk-free rate. First, solve for the weights in M* if the risk-free rate is changed by increments of 0.5% starting at 1% and going to 4%. How does that change your results? (Note I have included the Sharpe measure). Second, solve for the weights in the minimum variance portfolio as well as the expected return, variance and standard deviation of the MVP.