2. You must decide what proportion of your wealth, w, to invest in two risky assets. Let the return to these two assets be X and Y respectively. The return to the portfolio, P, can be described as: P=wX + (1 w)Y where w is the proportion of wealth invested in X and (1 w) is invested in Y. = 0.25, The returns on assets are independent of each other and random, with E(X) E(Y)= 0.10, and the variances of returns are Var(X) = 0.5 and Var(Y) = 0.3. = (a) Find the fraction of the wealth to be invested in asset Y if you want to achieve the expected return of 0.20 from the portfolio. [2 marks] (b) Find the variance of the return on the portfolio suggested in part (a). [3 marks] (c) Find the fraction of wealth to be invested in X if you want to minimise the variance of the return on the portfolio. [5 marks]