Question: Please help me find the answer for a and b. Please show steps used to find the solution. Min Variance Based on the two portfolios

Please help me find the answer for a and b. Please show steps used to find the solution.

Min Variance Based on the two portfolios and the minimum variance portfolio Portfolio 1 Portfolio 2 Portfolio shown to the right, w1 0.38281 0.41305 0.32325 W2 0.00081 0.02821 -0.05315 W3 0.33548 0.33830 0.32993 W4 0.03830 -0.00237 0.11840 W5 0.24260 0.22281 0.28158 a) Calculate the alpha value as discussed in Lecture 10. alpha = Points 4 Grade b) Complete the table of wights for three other optimal portfolios using alpha = -0.2 0 0.2 the alpha values provided rather than Markowitz' Equations. w1 Points 5 w2 Grade w3 W4 W5

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