(From Luenberger) Suppose there are n assets which are uncorrelated. You may invest in any one, or in any combination of them. The mean rate of return r is the same for each asset, but the variances are different. The return on asset i has a variance of i2 for i=1,2,,n. (a) Show the situation on an r diagram. Describe the efficient set. (b) Find the minimum-variance point. Express your result in terms of 2=(i=1ni21)1 (From Luenberger) Suppose there are n assets which are uncorrelated. You may invest in any one, or in any combination of them. The mean rate of return r is the same for each asset, but the variances are different. The return on asset i has a variance of i2 for i=1,2,,n. (a) Show the situation on an r diagram. Describe the efficient set. (b) Find the minimum-variance point. Express your result in terms of 2=(i=1ni21)1