Here are the risk and return estimates for the T-Note (#1) and the S&P 500 (#2) for the coming year:

Problem IV (12 points) Here are the risk and return estimates for the T-Note (#1) and the S&P 500 (#2) for the coming year: T-Note (#1) Expected Return E(R) 6%e Std, Deviation 12% Correlation (T-Note, S&P 500) = 0 S&P 500 (#2) 8% 16% 1. What is the expected return and standard deviation of the following portfolios? Portfolio Weight in Weight in T-Note S&P 500 1e 02 22 52 52 - 10 1e 32 2. What is the expected return and standard deviation of the minimum risk portfolio? 3. Which, if any, of the portfolios in the table above are dominated by the minimum risk portfolio? 4. What is your expected return and risk if you buy the minimum risk portfolio on margin (MR=0.5) You can borrow at 3 percent. 5. Suppose the correlation between the two securities (#1 and #2) is -1, what is the risk of the minimum risk portfolio that can be constructed from the two securities