Consider portfolios with positions in AMZN $($Amazon$)$ and XOM $($Exxon$-$Mobil$).$

The $($annual$)$ total $($not excess$)$ expected return and standard deviation of the return for the $2$ stocks are below.

The correlation between the returns is

The $($annual$)$ risk$-$free $($T$-$bill$)$ rate is

corr$(AMZN,$XOM$)0\mathrm{.}25$

$rf,5\%$

Calculate the $($annual$)$ expected total returns $($in percent$),$ standard deviations $($in percent$),$ and Sharpe ratios of the portfolios

for weights in AMZN ranging from $-100\%$ to $190\%($in $10\%$ increments$),$ with the remainder invested in XOM.

$($The spreadsheet will plot the investment opportunity set given these calculations.$)$

Find the weights in AMZN and XOM for a portfolio with an expected total return of

What is the standard deviation of this portfolio $($in percent$)?$

What are the weights in AMZN and XOM in the maximum Sharpe ratio portfolio, i$.$e$.,$ the tangency portfolio?

What are the expected total return $($in percent$),$ standard deviation $($in percent$),$ and Sharpe ratio of this portfolio?

$($The spreadsheet will plot the CAL for this portfolio given these calculations. Use the Solver tool in Excel.

If you need to learn how to use Solver, I have provided a video that gives a short tutorial.$)$

Calculate the expected total returns $($in percent$),$ standard deviations $($in percent$),$ and Sharpe ratios of the following portfolios. d Calculate the expected total returns $($in percent$),$ standard deviations $($in percent$),$ and Sharpe ratios of the following portfolios.

e What are the portfolio weights in the risk$-$free asset, AMZN, and XOM in the portfolio in part d$($ii$)?$