1. Share prices on the Philippine Stock Exchange rise 12 percent in Philippine pesos (PHP). During the same period the PHP rises in value from USD 0.0425/PHP to USD 0.0440/PHP. By how much do share prices on the Philippine Stock exchange rise in terms of USD?

2. The stock market of country A has an expected return of 5 percent and standard deviation of 8 percent. The stock market of country B has an expected return of 15 percent and standard deviation of 10 percent. Assume that the covariance between A and B is 20. What percent of your portfolio should you invest in country A for the minimum variance portfolio?