Consider the following statistics for a portfolio composed of shares of Companies A and B:

6.a. Suggest a portfolio combination that improves return while maintaining the same level of risk.
6.b. Calculate the minimum variance portfolio for the portfolio composed of the two assets described above.

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A B E Company A stock Company B stock 25% 48% 0.0800 0.1600 40.00% 1 2 Average Return 3 Variance 4 Sigma 5 6 Covariance of Returns 7 Correlation of Returns 8 9 Portfolio 10 Proportion of A 28.28% 0.00350 0.03094B6/(B4 C4) 0.9 11 Proportion of B 12 Portfolio average return 13 Portfolio standard deviation 0.1 27.30%