This only covers material from chapter 5. Use the following information for questions 1 - 24: Security R(%) 2(%%) 1 12 8 2 6 2 3 14 18 4 12 10.7 In addition, the correlations are: 12 = 1, 13 = 1, 14 = 0.

Security 1 + Security 2: Short Sales Allowed Using securities 1 & 2 and assuming short sales are allowed, solve for the minimum variance portfolio. 1. What is the fraction invested in Security 1? (2 decimal places if required) 2. What is the fraction invested in Security 2? (2 decimal places if required) 3. What is the expected return for this portfolio? (in %, 2 decimal places if required) 4. What is the standard deviation for this portfolio? (in %, 2 decimal places if required)