1. Consider portfolios with positions in the US and Brazilian equity markets. The (annual) expected return and standard deviation of returns for the 2 markets are as follows: The correlation between the returns is 0.2. a. Calculate the expected returns and standard deviations of the following portfolios: (i) 75% in the US, 25% in Brazil (ii) 45% in the US, 55% in Brazil (iii) 15% in the US, 85% in Brazil b. Find the weights for a portfolio with an expected return of 30% ? What is the standard deviation of this portfolio? 2. In addition to the information in Q.1, assume that the (annual) risk-free (T-bill) rate is 5%. a. Calculate the expected returns and standard deviations of the following portfolios: (i) 50% in the risk-free asset, 50% in the US (ii) 50% in the risk-free asset, 50% in Brazil (iii) 50% in the risk-free asset, 50% in the portfolio in Q.la(ii) b. Calculate the Sharpe ratios of (i) the US market (ii) the Brazilian market (iii) the portfolio in Q.1a(ii) (iv) the portfolio in Q.2a(iii) 1. Consider portfolios with positions in the US and Brazilian equity markets. The (annual) expected return and standard deviation of returns for the 2 markets are as follows: The correlation between the returns is 0.2. a. Calculate the expected returns and standard deviations of the following portfolios: (i) 75% in the US, 25% in Brazil (ii) 45% in the US, 55% in Brazil (iii) 15% in the US, 85% in Brazil b. Find the weights for a portfolio with an expected return of 30% ? What is the standard deviation of this portfolio? 2. In addition to the information in Q.1, assume that the (annual) risk-free (T-bill) rate is 5%. a. Calculate the expected returns and standard deviations of the following portfolios: (i) 50% in the risk-free asset, 50% in the US (ii) 50% in the risk-free asset, 50% in Brazil (iii) 50% in the risk-free asset, 50% in the portfolio in Q.la(ii) b. Calculate the Sharpe ratios of (i) the US market (ii) the Brazilian market (iii) the portfolio in Q.1a(ii) (iv) the portfolio in Q.2a(iii)