Question 1: A market consists of 100 stocks. All the stocks have mean return of 20% and risk 10%. The returns of the stocks are independent.

a) Find the weights of the portfolio of these stocks with the minimum possible risk and calculate the risk of this portfolio.

b) On an (r,) diagram, plot the Feasible Set and the Minimum Variance Set for these assets. Label your diagram clearly, mark all relevant values on each axis, and justify your diagram with the appropriate calculations.