The portfolio construction is based on the given variance for each individual portfolio and weights given for each portfolio which is dependent on the asset return percentage over the period of 5 years.
The mean return for each individual portfolio is given in excel and also above in table -1. The risk is lower because each individual portfolio and the value of beta are lower and in negative. The negative beta indicates that the all these assets are possible for investments as the market is down and chances are to grow the return in next few years. The annualized return over portfolio is expected around 6.3%. The entire portfolio is having lower risk of investment because of the market down which is expected to grow in coming time soon. The motive for the investment should be long term investment for all the assets based on the current short term performance.
The portfolio performed well for the short term duration. The average return for each individual portfolio is given in table -1 indicates that each portfolio achieved on an average of 5% monthly return and the annual return was around 6.3% based on last five years return history. The benchmark return was also set around 5% and based on that the expected return was above the benchmark which means the risk on the investment was almost negligible. The low risk on such assets indicates that more investment can be done for better returns in future.