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An investor wants to determine the safest way to structure a portfolio from several investments. Investment A produces an average annual return of 14% with

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An investor wants to determine the safest way to structure a portfolio from several investments. Investment A produces an average annual return of 14% with a variance of 0.025. Investment B produces an average rate of return of 9% with a variance of 0.015. Investment C produces an average rate of return of 8% with a variance of 0.010. Investments A and B have a covariance of 0.00029, and investments A and C have a covariance of -0.007. Investments B and C have a covariance of 0.00135. (Let PA, PB, and Pc be the proportion of total funds invested in investments A, B, and C, respectively.) (a) Suppose the investor wants to achieve at least a 12% return. What is the least risky way of achieving this goal? (Round your numeric values to three decimal places.) (PA' PBI PC) = (b) Suppose the investor regards risk minimization as being five times more important than maximizing return. What portfolio would be most appropriate for the investor? (Round your numeric values to three decimal places.) ( PAI PBI PC) = (

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