5 and 6: Gold and Google have expected returns of 0% and 10% respectively. The standard deviation of google is 10% and the standard deviation of Gold is 10% and the covariance between them is. 6. What is their correlation? (e.g. 20.3 80.2 a. 1 b. 0.1 c. O BOA d. -0.1 CRO.S e. -1 noitsive bisbn632 20.E to idW, 0 oilinog asporto reve di dong 20110 anwout 7. What is the weight in gold on a riskless (e.g. 0 variance) portfolio of google and gold 120m 3=A 1819M6 wolf 012 (assuming no shorting.) (Hint: just use our portfolio variance formula. Hint 2: Hint 3: What does your gut instinct tell you?) yours a. 0% 10% C. 50% d. 100% e. Such a portfolio cannot be formed. b. O a. M = 15%, 0 = 35%. b. N = 191-, 0 = 41. C. U = 177, 0 = 107. d. = 107, 0 = 01. e. Impossible to determine. a d A 8. A risk neutral investor would rather put their wealth in which of the following portfolios? (A=0)

and Google have expected returns of 0% and 10% respectively. The covariance betwe google is 10% and the standard deviation of Gold is 10% and the 6. What is their correlation? (e.g. a. 1 b. 0.1 c. 0 d. -0.1 e. -1 7. What is the weight in gold on a riskless (e.g. 0 variance) portfolio of google and gold (assuming no shorting.) (Hint: just use our portfolio variance formula. Hint 2: Hint 3: What does your gut instinct tell you?) a. 0% b. 10% c. 50% d. 100% e. Such a portfolio cannot be formed. 8. A risk neutral investor would rather put their wealth in which of the following portfolios? (A=0) a. M=15%,=3%. b. Y=14%,=4%. c. u=17%,=10%. d. U=10%;0=0% e. Impossible to determine