Chapter 14, Problem 4P

You are given the following data about Asset A and Asset B.                                                                           Asset A                 Asset B                               Expected returns                    8.6%                   7.9%                               Standard Deviation                3.8%                   4.6%                 Assuming that an investor is to choose between Asset A or Asset B, explain which asset               a rational investor will choose.     c) With the use of a diagram, explain why an investor will always choose a point on the              SML line.

Can someone give an example or scenario of the following: 1. Mean-Variance Analysis 2. Global minimum-variance portfolio 3. Capital allocation line (CAL) 4. Tangency Portfolio Then someone answered this, Im looking for the continuation. Thankyou :) “Since you have posted a question with multiple sub-parts, we will solve first three sub parts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.” The process of evaluating a level of risk denoted as a variance, which an individual will encounter for a certain expected return is known as mean-variance analysis. Investors are concerned about mean-variance analysis for better decision making regarding investments.Explanation:Mean variance analysis: Mean variance method is used in the scenarios where stock deviates from mean position and variance can be computed over a standard deviation. Stocks in the particular portfolio can be correlated under mean variance analysis.Global…

Could you use formulas in order to get those answers, like the images I have attached to this follow-up questions?