1.

Statistic	Security X	Security Y
Mean	12%	28%
Std. dev.	19%	36%
AB	0.43

a. Use the above statistics to calculate the minimum variance portfolio weight for Security X.

b. Use the above statistics to calculate the tangency portfolio weight for Security X assuming a 2% T-bill return.

2.

Statistic	Security 1	Security 2
Mean	20%	8%
Std. dev.	36%	12%
AB	-0.23

a. The tangency portfolio weight for Security 1 is 25% and the weight for Security 2 is 75%. Use the above statistics to calculate the tangency portfolio expected return. Enter your answer as a percent expression rounded to 2 decimal places.

b. The tangency portfolio weight for Security 1 is 25% and the weight for Security 2 is 75%. The minimum variance portfolio weights are 15% and 85%, respectively for Security 1 and Security 2. The T-bill return is 2%. Using the above statistics, what is the highest Sharpe ratio that an investor may obtain from these two assets?