$($a$.)$ Suppose you have the following returns for two assets, asset A and asset

B:

Year Asset A Asset B $2019-5\%10\%20204\%-3\%20212\%5\%2022$

$4\%$

$-1\%$

$($i$.)$ Calculate the weights in the minimum variance portfolio.

$($ii$.)$ Calculate the portfolio expected returns $($i$.$e$.,$ mean$)$ and portfolio

standard deviation for the following $4$ portfolios: you invest only in

asset A$,$ you invest only in asset B$,$ you invest in an equally weighted

portfolio between the two assets, you invest in the minimum variance

portfolio.

$($iii$.)$ Draw the efficient frontier using those four portfolios. Add the CML if

the risk$-$free rate is $0\mathrm{.}5\%.$

$($iv$.)$ Explain how you would invest if the maximum amount of risk you

could bear is $1\mathrm{.}25($as measured by the standard deviation$).$