[SOLVED] 代写 scala In your Investments class this week, you learned how to calculate the expected return and variance of a portfolio, and you saw the importance of diversification. In this question, you will get to apply what you learned there.

Consider the following two assets. The return on asset 1 has an expected value of 16.4% and a volatility of 20.2%. The return on Asset 2 has an expected value of 18.0% and a volatility of 25.0%. The correlation between these two returns is 0.19.

In your Investments class this week, you learned how to calculate the expected return and variance of a portfolio, and you saw the importance of diversification. In this question, you will get to apply what you learned there.

Consider the following two assets. The return on asset 1 has an expected value of 16.4% and a volatility of 20.2%. The return on Asset 2 has an expected value of 18.0% and a volatility of 25.0%. The correlation between these two returns is 0.19.
a. Write a function called get_portfolio_return that will compute the expected return and volatility of a portfolio of two assets. The first line of your function file – the function’s “signature” or declaration – must be:

function [E_Rp, sigma_Rp] = get_portfolio_return( weight,exp_rets, vols, corr) 

where weight is a 1×1 scalar denoting the weight of Asset 1 in the portfolio, exp_rets is a 2×1 vector of expected returns of the two assets, vols is a 2×1 vector of volatilities of the two assets, and corr is a 1×1 scalar denoting the correlation between the two assets. Your function must create two outputs – the expected return and volatility of the portfolio – and store them in variables E_rp and sigma_Rp.

Note: your function must work for any two assets. In other words, the specific values for expected returns, volatilities, correlation, and weights must be passed into the function as arguments, not defined in the function code itself.

Your function must have comments under the first line that explain what the function does, what inputs it takes in, and what outputs it returns. See the functions we wrote in class for an example of what such a comment looks like.

The code answer to this part of the question should be the entirety of your function. The output answer to this part of the question should be the output of the command help portfolio_return.
b. Use your function to compute the expected return and volatility of a portfolio that invests 40% in Asset 1 and the remainder in Asset 2. Report the results in percent with 1 decimal place e.g. “11.3%.”
c. In this part, you will use your function to compute the investment opportunity set for these two assets – the set of expected returns and volatilities achievable with all long positions in these two assets.

Define a 100×1 vector of equally-spaced Asset 1 weights from 0 to 1. Use a ‘for’ loop to compute expected returns and volatilities for each weight in this vector. Store the results in two 100×1 vectors – one for expected returns and one for volatilities.

Plot the Investment Opportunity Set. Label the horizontal axis “Portfolio Volatility.” Label the vertical axis “Portfolio Expected Return.” Title your plot “Part (c): Investment Opportunity Set.”

Describe the relationship between risk and return apparent in your plot.