(ii) What is the variance on this portfolio?

b) Is it possible to form a zero-variance portfolio using A and C listed above provided that short selling is not permitted? Why or why not?

Question 4 (8 marks) Consider that you have three assets available to invest in and you are reviewing the following information regarding these assets: A Asset Expected return Variance B 0.1 0.2 0.09 0.1 0.04 0.16 B Correlation A B A 1 0.5 -0.3 1 -0.2 1 Required a) Suppose that you have decided to invest in all three assets based on the equally- weighted concept to form your portfolio. In total, you have $50,000 to invest. (i) What is the expected return on this portfolio? (1 mark). And how much do you invest in each asset in terms of dollars? (1 marks)