Assuming short selling is allowed. Assuming that the riskless lending and borrowing rate is 5%, find the new efficient set for the combination of securities 1 and 2. Derive the equation for the new efficient set. E (R_1) = 8% E (P_2) = 15% sigma_1 = 10% sigma_2 = 20% p_12 = 0.5 Optimal asset/portfolio; W_1 = 22.22% W_2 = 77.78% E(R_p) = 13.44% sigma_P = 16.78% Equation for the new efficient set: E(R_c) = 0.05 + 0.5sigma_c