# Question Returns of Stocks X and YX YAverage Return 19.00% 13.00%Variance 0.09 0.04Standard Deviation 30% 20%Covarience 0.01Risk-free return 3.00%1) What is the return and standard deviation of the minimumvariance portfolio for X and Y? Ret = StDev =2) What are the weights of the minimum variance portfolio? Wx = Wy=3) What is the return and standard deviation of a portfoliocomposed of 30% in the minimum variance portfolio and 70% in therisk free asset? Ret = Stvev =4) What are the weights of a portfolio composed of the minimumvariance portfolio and the risk-free asset that has a return of9%?? WMinVar = WRiskFree =5b) What are the weights of a portfolio composed of the minimumvariance portfolio and the risk-free asset that has a standarddeviation of 5% WMinVar = WRiskFree =6a) What is the Sharpe ratio of the minimum variance portfolio?Shapre = Returns of Stocks X and Y
X Y
Average Return 19.00% 13.00%
Variance 0.09 0.04
Standard Deviation 30% 20%
Covarience 0.01
Risk-free return 3.00%
1) What is the return and standard deviation of the minimum variance portfolio for X and Y? Ret = StDev =
2) What are the weights of the minimum variance portfolio? Wx = Wy =
3) What is the return and standard deviation of a portfolio composed of 30% in the minimum variance portfolio and 70% in the risk free asset? Ret = Stvev =
4) What are the weights of a portfolio composed of the minimum variance portfolio and the risk-free asset that has a return of 9%?? WMinVar = WRiskFree =
5b) What are the weights of a portfolio composed of the minimum variance portfolio and the risk-free asset that has a standard deviation of 5% WMinVar = WRiskFree =
6a) What is the Sharpe ratio of the minimum variance portfolio? Shapre =

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