# 1. (40 pts.) The table shows the rate of return (%) for two risky assets for the last 5 years.

**Tutor description**

1. (40 pts.) The table shows the rate of return (%) for two risky assets for the last 5 years. . Year . Asset 1 2 3 4 5 1 11.34 -17.64 -5.38 44.72 13.39 2 23.57 51.96 -20.45 48.12 6.17 a) Find mean return, variance for each asset, and covariance and correlation among them. b) Find the weights of minimum variance portfolio. Find the mean and variance of the rate of return c) Suppose a portfolio mean return equal to 16% is desired. Find the variance of such portfolio. d) Is it possible to build a portfolio having standard deviation smaller than 20%? Show why yes or why not (you do not have to find such portfolio). 2. (60 p

## Review from student

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors