suppose you purchase $1,000 of security A, purchase $500 of security B and th worth of A is now $500. if these transaction constitute your entire portfolio, what are the portfolio weights for each component of the portfolio?

compute the variance and expected return from the above with addiontional information:

	a	b
variance	.25	.49
expected return	.10	.16

the correlation between A with B is .7 . borrowing takes place at a risk-free interest rate of .05.