Instruction: You have two customers that have different tastes of risk. The first customer is a risk averter who find the way of minimizing investment risk. The other customer is a kind of person who taking affordable risk that makes a risk adjusted return. Your boss asks you to find optimal weights of investments satisfying their risk-preferences. Problem 1. Using the first portfolio, find out optimal weights that minimizes the portfolio standard deviation (Minimum Variance Portfolio). minwsubjecttoP2=wwTwrT=E(RP)w1=1 Problem 2. Using the first and second portfolio, find out optimal weights that maximizing the portfolio standard deviation (Tangent Portfolio). maxwsubjecttoPE(RP)=(wwT)1/2wrTw1=1. Instruction: You have two customers that have different tastes of risk. The first customer is a risk averter who find the way of minimizing investment risk. The other customer is a kind of person who taking affordable risk that makes a risk adjusted return. Your boss asks you to find optimal weights of investments satisfying their risk-preferences. Problem 1. Using the first portfolio, find out optimal weights that minimizes the portfolio standard deviation (Minimum Variance Portfolio). minwsubjecttoP2=wwTwrT=E(RP)w1=1 Problem 2. Using the first and second portfolio, find out optimal weights that maximizing the portfolio standard deviation (Tangent Portfolio). maxwsubjecttoPE(RP)=(wwT)1/2wrTw1=1