6 ) 0.10 0.18 0.25 0.01 0.04 CONCX) 7oz Jon related F 0.09 a. weight of portfolio with smallest rist? Use the following yearly rate of return values for Questions 1, 2, 3, and 4 Year Stock A Stock B Market SOS 11.06 11.0% 2009 2010 2011 10.0% -3.0% -3.0% 3.COM 10.00 3.0% 80% - 15.00 -6. 11.046 2012 2013 11.09 2015 -2.0% 13.7% -5.0% 14.0% 10.00 15.06 -50% 14.08 -OS 1.0 -2.0% 3.0% 2016 10 2017 2018 10.0% -6,0% 506 2.0% 1.07% 1. Lamar wants to invest S1000 in a portfolio that invests in socks A and B Lamar does not want to short sell (so portfolio weights cannot be negative) Lamar decides to use the historical returns shown above for computing expected portfolio return and variance of portfolio retum. (10 pts) () Find the expected return, standard deviation of return, and covariance of return for stocks A and B (b) What is the highest expected portfolio return that Lamar can achieve? (c) Find the expected portfolio return and standard deviation of portfolio return for 4 possible portfolios and plot the 4 portfolios on the mean-standard deviation plane 21121 6 ) 0.10 0.18 0.25 0.01 0.04 CONCX) 7oz Jon related F 0.09 a. weight of portfolio with smallest rist? Use the following yearly rate of return values for Questions 1, 2, 3, and 4 Year Stock A Stock B Market SOS 11.06 11.0% 2009 2010 2011 10.0% -3.0% -3.0% 3.COM 10.00 3.0% 80% - 15.00 -6. 11.046 2012 2013 11.09 2015 -2.0% 13.7% -5.0% 14.0% 10.00 15.06 -50% 14.08 -OS 1.0 -2.0% 3.0% 2016 10 2017 2018 10.0% -6,0% 506 2.0% 1.07% 1. Lamar wants to invest S1000 in a portfolio that invests in socks A and B Lamar does not want to short sell (so portfolio weights cannot be negative) Lamar decides to use the historical returns shown above for computing expected portfolio return and variance of portfolio retum. (10 pts) () Find the expected return, standard deviation of return, and covariance of return for stocks A and B (b) What is the highest expected portfolio return that Lamar can achieve? (c) Find the expected portfolio return and standard deviation of portfolio return for 4 possible portfolios and plot the 4 portfolios on the mean-standard deviation plane 21121