1. A competitive portfolio has an expected return of 6.2% and standard deviation of Section C: Calculation Problems T.Bills has a return of 3% and standard deviation of 0%. Dow Jones Index has an expected return of 10% and standard deviation of 15%. If you are willing to make your own portfolio with a standard deviation of 8%, the portfolio consists of risky and risk-free asset. a. What is the weight in the risky asset and the risk free asset? [2 marks] b. What is the expected return of your portfolio? [2 marks] c. If you want to decrease your portfolio risk, would you suggest to increase or decrease your weight in T.Bills. [2 marks]