The expected return of asset A is equal to 12%, and standard deviation of asset A is 0.2. The expected return of asset B is equal to 8 % , and standard deviation of asset B is 0.22. Correlation between assets A and B is equal to 0.7. You want to form a portfolio with 11 % expected return, what should be weight of asset A in that portfolio? 1.1 1.2 Now, you decided to form another efficient portfolio with volatility of 0.22, what should be weight of asset A in that portfolio? There are two assets in the economy. The vector of returns of assets is given by: 0.08 The vector of weights is given by: The variance-covariance matrix is: (.0184 0.09) 2.1. Using matrix notation, compute expected returns of your portfolio? 2.2. Using matrix notation, compute volatility of your portfolio? 2.3. Compute Sharpe ratio if risk-free rate rf 0.015