During the decade 2005 2014, Ford and Microsoft were negatively correlated (See data below). Find the following two portfolios: a. Minimum variance portfolio b. Portfolio having an expected return of 4%.

Date 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 FORD AND MSFT FORD MSFT return return 112.92% -0.93% -52.92% 15.82% -43.44% 20.85% -5.91% -44.37% -5.83% 60.40% 53.33% -6.52% -48.14% -4.52% -11.38% 5.83% 4.73% 44.29% -32.90% 27.54% 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 -2.95% 0.2646 Average, E((FORD) and E(TMSFT) Variance, Var(FORD) and Var(TMSFT) Standard deviation, OFORD and OMSFT Covariance of returns, Cov(FORD, IMSFT) Correlation of returns, PFORD,MSFT 11.84% 0.0858 29.28% 51.44% -0.0276 -0.1831