3. Compute the following

e) portfolio standard deviation if 60% of your wealth is invested in United, and 40% in Pfizer.

f)What is the reduction is standard deviation due to diversification?

g)Which stock is riskier if held individually? As part of a portfolio?

h) If the annual risk-free rateis 0.07%, which stock has a higher Sharpe ratio?

	United Airlines	Pfizer	S&P 500
Date	Closing Price	Closing Price	Closing Index value
1/1/2016	48.28	23.99	1940.24
2/1/2016	57.26	23.34	1932.23
3/1/2016	59.86	23.55	2059.74
4/1/2016	45.81	25.99	2065.30
5/1/2016	45.09	27.57	2096.95

4. What are the weights in United Airlines, Pfizer, and S&P 500 that yields the minimum portfolio standard deviation for a portfolio expected monthly return of 1%.