Use the same information from exercise $2.$ Solve for the portfolio weights which maximize the ratio of

the expected excess return to the standard deviation of the portfolio return.

Max$\frac{[E_S-r_f]}{{}_s}$

You need to add a risk$-$free rate of $4\%.$ What is the minimum standard deviation and what is the

expected return?

Using this information find the risk minimizing portfolio with a target return of $14\mathrm{.}2\%$ and then find the

expected return $-$ maximizing portfolio with a risk tolerance of $13\%.$

Let $E_s$ be the expected return on the four securities and $E_p$ be your portfolio target return. The weight

for the targer return of $14\mathrm{.}2\%$ is given by:

$w_s=\frac{E_p-r_f}{E_s-r_f}$

The weight for the standard deviation is:

$w_s=\frac{{}_p}{{}_s}$