1. The following are the returns for stocks, GE and MSFT over 5 different, equally important periods: GE MSFT Period 1 -3.1 2.2 Period 2 5.8 0.9 Period 3 1.1 -1.3 Period 4 2.7 0.7 Period 5 0.3 1.5 For parts a-e below, show your work in as much detail as possible for partial credit. Circle your final answers. You may use the pages of the exam and/or the scratch paper provided. You may also use the attached sheet of formulae. (35 points total) a) Find the expected return of a portfolio which consists of 70% GE and 30% MSFT. (4) b) Find the standard deviation of the portfolio which consists of 70% GE and 30% MSFT. (14) c) Find the weight of the proportion of funds invested in GE) of the minimum variance portfolio which combines assets GE and MSFT. (7) d) Find the expected return of the minimum variance portfolio of GE and MSFT (3) e) Find the standard deviation of the minimum variance portfolio of GE and MSFT. ()