(A)

A portolio is made up of two assets, A and B. Asset A has 5000 shares with each selling for Ghc 10 and asset B has 15000 shares with each share selling for Ghc 5. Asset A gives a return of 15% whiles asset B gives a return of 12%. Asset A's standard deviation of returns of 8% whiles that of asset B is 10%. The correlation of returns of asset A and B is -0.5.

Calculate

i. the weights of asset A and asset B.

ii. the portfolio return

iii. calculate the risk of the portfolio.

(B)

If 2000 shares of the asset A were sold at Ghc10, calculate

i. the new weight of the investment

ii. the standard deviation of the current portfolio.