Assume each state of the economy is equally likely.

You want to diversify your portfolio so that you earn the maximum return, but you

also want to guarantee you will never receive a negative return. What portfolio

weights should you use?

$x=\frac{3}{4},Y=\frac{1}{4}$

$x=\frac{2}{3},Y=\frac{1}{3}$

$x=\frac{1}{4},Y=\frac{3}{4}$

$x=\frac{1}{3},Y=\frac{2}{3}$

What is the expected return of your portfolio if you use the weights from the answer to the last question?