Stock Expected Return Volatility Beta 5% 10% 1.0 Y 10% 30% 2.0 Portfolio Z is 50% X and 50% Y. Correlation between X and Y is 1. Risk-free rate is 1%. You have mean-variance utility. Your risk-aversion coefficient is 2. What is the expected return of Portfolio Z? O A.5% B. 7.5% C. 10% OD. 12.5% E. None of the above Question 4 2p What is the volatility of Portfolio Z? This question can be answered without extensive calculation. But, you may calculate if you wish. O A 0% B. 10% O C. 15.8% OD 20% E. None of the above You are allocating between the risk-free asset and asset Y. Given your preferences, what is the optimal weight on asset Y? O A 10% O B. 50% C.55.5% OD. 100% O E. None of the above