Question: please show all workings. thank you Question 2 a. State the basic assumptions behind Markowitz portfolio theory. (10 marks) b. Information for a portfolio of

please show all workings. thank you Question 2 a. State the

please show all workings. thank you

Question 2 a. State the basic assumptions behind Markowitz portfolio theory. (10 marks) b. Information for a portfolio of two assets is given below: Asset (B) E(Rb)=11% Asset (A) E(Ra)=25% 0 = 5% W=0.25 0= 7% Wb=0.75 COVAB = 0.00012 Calculate the expected return for the portfolio -E(Rport) Calculate the standard deviation for the portfolio. i. ii. (4 marks) (4 marks)

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