QUESTION 5. Now you want to combine the highest Sharpe ratio portfolio (or Optimum risky Portfolio O) you found out abov

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QUESTION 5. Now you want to combine the highest Sharpe ratio
portfolio (or Optimum risky Portfolio O) you found out above with a
risk-free asset to create a Portfolio C for your client to get an
even more efficient portfolio. The risk-free asset, the one-year
Global Government bond, provides a risk-free annual rate of return
of 0.05%. (3 marks)
Suppose your client says her risk tolerance of 4%, what is the
return of her combined portfolio C? (1 marks)
How much weight (your client’s wealth distribution) should you
put into Portfolio O (the risky asset) and in the risk-free asset
in the above situation to create Portfolio C? (1 mark)
How does the weight in each asset (Equity, Crypto & the
Global government bond) in portfolio C look like? Give the
interpretation on the portfolio’s weights for 100$ investment in
portfolio C (1 mark).