1 Fill in the highlighted area, given the information about stock X and Y. 2 Graph the portfolios \begin{tabular}{|l|r|r|} \hline & Stock X & Stock Y \\ \hline Expected return & 20% & 14% \\ \hline Sigma of return & 35% & 20% \\ \hline Correlation & 0.4 & \\ \hline \end{tabular} General X-Y portfolio \begin{tabular}{|c|c|c|} \hline \multicolumn{1}{|c|}{ Percentage of X} & \multicolumn{1}{|l|}{ Sigma } & \multicolumn{1}{|c|}{ Mean } \\ \hline 0% & & \\ \hline 10% & & \\ \hline 20% & & \\ \hline 30% & & \\ \hline 40% & & \\ \hline 50% & & \\ \hline 60% & & \\ \hline 70% & & \\ \hline 80% & & \\ \hline 90% & & \\ \hline 100% & & \\ \hline \end{tabular} 3 Suppose you can borrow and lend at 6%. What would be the optimal portfolio? \begin{tabular}{|l|l|l|l|l|} \hline Weight X & Weight Y & Expected Return & Standard Deviation & Sharpe Ratio \\ \hline & & & & \\ \hline \end{tabular} 4 What would an investor always invest in the portfolio created in part 1 Fill in the highlighted area, given the information about stock X and Y. 2 Graph the portfolios \begin{tabular}{|l|r|r|} \hline & Stock X & Stock Y \\ \hline Expected return & 20% & 14% \\ \hline Sigma of return & 35% & 20% \\ \hline Correlation & 0.4 & \\ \hline \end{tabular} General X-Y portfolio \begin{tabular}{|c|c|c|} \hline \multicolumn{1}{|c|}{ Percentage of X} & \multicolumn{1}{|l|}{ Sigma } & \multicolumn{1}{|c|}{ Mean } \\ \hline 0% & & \\ \hline 10% & & \\ \hline 20% & & \\ \hline 30% & & \\ \hline 40% & & \\ \hline 50% & & \\ \hline 60% & & \\ \hline 70% & & \\ \hline 80% & & \\ \hline 90% & & \\ \hline 100% & & \\ \hline \end{tabular} 3 Suppose you can borrow and lend at 6%. What would be the optimal portfolio? \begin{tabular}{|l|l|l|l|l|} \hline Weight X & Weight Y & Expected Return & Standard Deviation & Sharpe Ratio \\ \hline & & & & \\ \hline \end{tabular} 4 What would an investor always invest in the portfolio created in part