Question: 1 Use the information in the Table below to answer the following questions (a-d); Outcome Probability Return X % Return Y% 0.25 12 2 0.25

1 Use the information in the Table below to answer the

1 Use the information in the Table below to answer the following questions (a-d); Outcome Probability Return X % Return Y% 0.25 12 2 0.25 6 12 3 0.25 2 14 4 0.25 10 14 10 a) Calculate the expected return of portfolio with 20% in asset X and 80% in asset Y. [2] b) Calculate the risk of this portfolio. [4] c) Calculate the minimum variance portfolio weights. [4] d) Show that the risk of a minimum variance portfolio is very closer to zero. [4]

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