2. Portfolio Choice Suppose we have assets A and B with the following distribution of returns: Probability Return for A .01 Return for B -.14 .00 .03 TO .05 .07 14 .30 .09 .50 a. Compute the expected returns for assets A and B, rA and rg. b. Compute the variances of A and B, o and o. c. Compute the covariance of A and B, CAR- d. Use the formulas for portfolio returns and risk to write the expected portfolio return and standard deviation for an equally weighted portfolio of A and B, rp and Op. e. Use the formula to find the portfolio weights, a* and 1 - a* for the minimum variance portfolio of A and B. f. Find the portfolio return and standard deviation of the minimum variance portfolio