An investor has invested in 2 assets MOU shares and MUT shares. The investor currently holds 500 units of MOU shares and 1,500 Units of MUT shares. The market price for the MOU and MUT shares is Rs 100 and Rs 70 respectively. The expected returns on MOU and MUT shares are 12% and 8% respectively. The standard deviation of the MOU and MUT shares are 5% and 2.5% respectively. The correlation coefficient between the MOU and MUT share is - 0.6.

REQUIRED

(i) Calculate the proportion of investment made by the investor in the MOU shares and MUT shares.

(ii) Calculate the expected return of the portfolio.

(iii) Calculate the standard deviation of the portfolio.

(iv) Calculate the proportion that needs to be invested on MUT shares to achieve the minimum variance portfolio.