1). (answer is given) Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%. What expected return and standard deviation does your graph show for the minimum-variance portfolio? Answer: The parameters of the opportunity set are: E(rs)=15%,E(rn)=9%,s=32%,n=23%,r=0.15,rt=5.5% So Cos(ts, ta)=s0n=110.4%% The minimum-variance portfolio proportions or weights are: ysed(B)=10.3142=.6858(seethefollowingtable) The meas and standard deviation of the minimum variance portfolio are: =[(0.314221024)+(0.68582529)+(20.31420.6858110.4)]1/2 =19.94% (See the following table for the investment opportunity set) Table for Investment Opoertunify Set Minimum Variance Portfoli Tasency (Ootimab Bort