Question 4 There are only two risky assets A and B with expected returns ra=18%, 18 = 14% and standard deviations o A =15%,08 =12%. The correlation coefficient between the retums of the two assets is 0.5. (a Solve for the minimum-variance portfolio of the two risky assets, as well as the expected rate of return and standard deviation of the portfolio. (12 marks) (b) When risk-free asset is available at rate 6 %, solve for the tangency portfolio. (4 marks) (c) Discuss how the returns of the portfolios derived in Q4(a) and Q4(b) are correlated (4 marks)