Question: Given the two risky assets with expected returns 1 = 0.10, 2 = 0.12, and STD 1 = 0.2, 2 = 0.2, assuming the risk-free

Given the two risky assets with expected returns 1 = 0.10, 2 = 0.12, and STD 1 = 0.2, 2 = 0.2, assuming the risk-free rate is f = 0.05 and the correlation between the two assets is r12 = 0,

(a) What is the expected return and STD (risk) of the MVP?

(b) What is the expected return and STD (risk) of the tangency portfolio?

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