= = (14pt) The annual estimates of the parameters for Boeing (B) and Microsoft (M) stocks are given below: MB = 0.1492, fm = 0.3308,0% = 0.0695, o M = 0.1369, PBM = -0.0083 Assume a risk-free rate of 3% per year for the T-bill (risk free rate). (a) (4pt) Use the Lagrange multiplier method to derive the minimum variance port- folio. (b) (4pt) Suppose you desire a portfolio with an expected return of 14%. What should be the weights of this portfolio? What is its risk equal to? (c) (4pt) Suppose you desire a portfolio with a risk of 4%. What should be the weights of this portfolio? What is its expected return equal to? (d) (2pt) Assume a risk-free rate of 5% per year for the T-bill (risk free rate). Consider a portfolio that has 30% in Boeing, 30% in Microsoft and 40% in T-bills. What are its mean and risk equal to? = = (14pt) The annual estimates of the parameters for Boeing (B) and Microsoft (M) stocks are given below: MB = 0.1492, fm = 0.3308,0% = 0.0695, o M = 0.1369, PBM = -0.0083 Assume a risk-free rate of 3% per year for the T-bill (risk free rate). (a) (4pt) Use the Lagrange multiplier method to derive the minimum variance port- folio. (b) (4pt) Suppose you desire a portfolio with an expected return of 14%. What should be the weights of this portfolio? What is its risk equal to? (c) (4pt) Suppose you desire a portfolio with a risk of 4%. What should be the weights of this portfolio? What is its expected return equal to? (d) (2pt) Assume a risk-free rate of 5% per year for the T-bill (risk free rate). Consider a portfolio that has 30% in Boeing, 30% in Microsoft and 40% in T-bills. What are its mean and risk equal to