4. Complete each of the following: (a) XVW Ltd. currently holds a portfolio containing two assets; Asset 1 and Asset 2. If 1 = 0.25, 2 = 0.36, 1 2 = 0.1, 2 2 = 0.15 and 12 = 0.125, where represents the return in asset . Determine the optimal proportions in which each asset should be held if the company would like to minimize the variance of their portfolio. [7 marks]

(b) VIP Ltd. predicts that its next two annual dividends will decline by 5% each year, after which dividends will grow at a constant annual rate of 1%. Determine the current price of this companys stock if the last dividend paid was $10 and the required rate of return in the market is 6%? [5 marks]