Question: Question 3: (20 points). There are two assets in the economy. The vector of returns of assets is given = (0:08) 0.1 The vector

Question 3: (20 points). There are two assets in the economy.

Question 3: (20 points). There are two assets in the economy. The vector of returns of assets is given \ = (0:08) 0.1 The vector of weights is given by: 0.2 w= The variance-covariance matrix is: (0.0484 0.02) a) Using matrix notation, compute expected returns of your portfolio? b) Using matrix notation, compute volatility of your portfolio? c) Compute Sharpe ratio if risk-free rate rf=0.01

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