Hello. I am doing question 8. In Question 8, it says that if you can only choose a maximum of two assets to hold in your portfolio, which two would you choose? What are the optimal weights and the optimal expected returns? I am trying to solve for REturns A and Returns C.

I have E(x₁) = 0.0777 V(x₁) = 3.9593 Covariance (x₁x₂)= -0.00762

E(x₂) = 0.0777 V(x₂) = 13.665

[X1 = REturns A, X2 = Returns C].

Next i put the formula in as E(rt) = w1 E(x₁) + w2 E(x₂)

After that i put in the formula as Var(rt) = w₁² Var(x1) + w₂² Var(x2) + 2w1w2 Cov(x₁x₂).

After that, I place it as L = E(rt) - Var(rt).

My formula is shown as this: w1 E(x₁) + w2 E(x₂) - (w₁² Var(x1) + w₂² Var(x2) + 2w1w2 Cov((x₁x₂)).

Next, i had to differentiate both w1 and w2.

After that, i plug in the formula as E(rt) = w1 E(x₁) + w2 E(x₂).

Does anyone have the working out for this?