Question: Statistic Security 1 Security 2 Mean 20% 8% Std. dev. 36% 12% AB -0.23 a. The tangency portfolio weight for Security 1 is 25% and

Statistic	Security 1	Security 2
Mean	20%	8%
Std. dev.	36%	12%
_AB	-0.23

a. The tangency portfolio weight for Security 1 is 25% and the weight for Security 2 is 75%. Use the above statistics to calculate the tangency portfolio expected return. Enter your answer as a percent expression rounded to 2 decimal places.

b. The tangency portfolio weight for Security 1 is 25% and the weight for Security 2 is 75%. The minimum variance portfolio weights are 15% and 85%, respectively for Security 1 and Security 2. The T-bill return is 2%. Using the above statistics, what is the highest Sharpe ratio that an investor may obtain from these two assets?

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