Suppose that assets 1 and 2 are 24% correlated and have the following expected returns and standard deviations:

Asset	E(R)
1	14%	9%
2	8%	4%

a) Calculate the expected return and standard deviation for a portfolio consisting of equal weights in assets 1 and 2. (4 marks)

b) What are the weights of a minimum variance portfolio consisting of assets 1 and 2? What is the expected return and standard deviation of this portfolio? (8 marks)

c) Has there been an improvement with respect to the risk-adjusted return as a result of allocating capital according to the minimum variance portfolio weights? You can assume a risk-free rate of 1.5% p.a. in answering this question. (5 marks)