ONLY NEED 1 & 2 answered

1. (8points) What are the weights, expected return and standard deviation of the tangency portfolio?

2. (8points) If one can invest in the risk-free security (either long or short), what is the best portfolio you can hold that earns a 13% expected return? Please specify the weights in the risk-free asset, Assets 1, 2 and 3as well as the portfolios standard deviation.

As of right now I have this....

Consider three risky assets with the following attributes: Expected Return Standard Deviation Asset 1 12% 22% Asset 2 10% Asset 3 15% 18% 5% The risk-free rate is 2%. The covariance matrix for the assets is: Asset 1 Asset 2 Asset 1 0.0484 0.0110 Asset 2 0.0110 0.0100 Asset 3 0.0198 0.0090 Asset 3 0.0198 0.0090 0.0324 Assume short-selling is allowed. Use Excel to explain your answers (use FORMULA TEXT)