Consider two risky assets R1, R2

0 = 0.1, 02 = 0.3, 012 = -0.03, and M = 2%, Hl2 = 8%. (a) Find the portfolio with minimal variance and compute its return and variance. (b) A risk-free bond Ro =r is introduced to the market. Computer and justify your answer. (c) What is the mutual fund portfolio in this market? Justify your answer. 0 = 0.1, 02 = 0.3, 012 = -0.03, and M = 2%, Hl2 = 8%. (a) Find the portfolio with minimal variance and compute its return and variance. (b) A risk-free bond Ro =r is introduced to the market. Computer and justify your answer. (c) What is the mutual fund portfolio in this market? Justify your