Part 2 Minimum Variance and Tangent Portfolios 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 first portfolio, find out optimal weights that minimizes the portfolio standard devi. ation (Minimum Variance Portfolio). op=w. WT subject to wr" - E(Rp) (11) w.1-1. min Problem 2. Using the first and second portfolio, find out optimal weights that maximizing the portfolio standard deviation (Tangent Portfolio). E(Rp) TEX OP subject to W.11. w (12) Problem 3. Compute 99% - portfolio VaRx (le percentage VaR) for the respective minimum variance portfolion and tangent portfolios and explain these values Part 2 Minimum Variance and Tangent Portfolios 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 first portfolio, find out optimal weights that minimizes the portfolio standard devi. ation (Minimum Variance Portfolio). op=w. WT subject to wr" - E(Rp) (11) w.1-1. min Problem 2. Using the first and second portfolio, find out optimal weights that maximizing the portfolio standard deviation (Tangent Portfolio). E(Rp) TEX OP subject to W.11. w (12) Problem 3. Compute 99% - portfolio VaRx (le percentage VaR) for the respective minimum variance portfolion and tangent portfolios and explain these values