Suppose the risk-free rate is 0.65%. Rank the three securities from lowest to highest according to the slope of their Capital Allocation Line, that is, their Sharpe ratio:
	Securities	Expected Return and Volatility		Risk-free rate	0.65%
		E(r)	s	Sharpe ratios
	S1	5,0%	3,0%	1.45
	S2	4,0%	3,5%	0.96
	S3	6,0%	3,6%	1.49
Note the (incomplete) variance-covariance matrix S shown in the spreadsheet. If the correlation between S1 and S2 is 0.45, that between S2 and S3 is 0.02, and that between S1 and S3 is 0.5, fill in the remaining elements of the variance-covariance matrix.
	Variance-covariance matrix S
	S1	S2	S3
S1	0,00090	0,00047	0,00054
S2	0,00047	0,00123	0,00000
S3	0,00054
Now that you have filled the S matrix, follow the matrix solution procedure discussed in Module 6 to obtain the optimal portfolio P*. Enter the weights obtained for each of the securities, with three decimal places.
	Inverse of the Variance-Covariance Matrix			Excess Return Vector	Z Vector	Optimal Portfolio weights, w
	S-1			R - Rf	z
							ws1
							ws2
				Sum	0	0,000