stock	E(r)	STD DEV	Correlation Coeff.
1	.05	.20	1 with 2 = -.2
2	.1	.1	1 with 3 = .3
3	.2	.15	1 with 4 = .5
4	.15	.3	2 with 3 = .2
			2 with 4 = -.5
			3 with 4 = 0

a portfolio is formed as follows: sell short $2,000 of security 1 and buy $3,000 of security 2, $2,000 of security 3, and $3,000 of secuirty 4. the cash provided by the owner of the portfolio is $2,000, and any additional fund required to finance the portfolio are borrowed at a risk free interest rate of 5 percent. there are no resitrictions on the use of short sell proceeds.

a. compute the portfolio weights for each component of the portfolio

b. compute the expected return of the portfolio

c. compute the standard deviation of the portfolio