2. An investor would like to create a portfolio with a mixture of investment X and Y. Let y be the portion he invested in Investment Y. (a) (1 point) Write the expected return and the volatility of the portfolio in terms of y. (b) (1 point) If the investor does not care about volatility, but only expected return. What is the value of y that the investor would choose? (c) (2 points) If a CAL is drawn to describe the risk-return relationship of the portfolio mixing Investment X and Y, what is the slope of the CAL? (d) (2 points) Find the optimal value of y if A = 2. R