1. The following table gives the data for three portfolios:

Measures	Asset X	AssetY	Portfolio 1	Portfolio 3
	Also (Portfolio II)		25% in X and 75% in Y	Risk free money market fund
0.1	15	16
0.4	7	5
0.3	2	1
0.2	-3	-2
Expected Return (%)				3
Variance				0
Standard deviation (%)				0
Coefficient of Variation				0
Covariance	24.75

1. (4) Find the expected return of Asset X. Insert the value you found in the table.

2. (4) Find the standard deviation of Asset Y. Insert the value you found in the table.

3. (6) A portfolio has 25% invested in Asset X and 75% in Asset Y. Find the expected value, standard deviation and coefficient of variation of the portfolio

4. (1) A risk averse person will pick X or Y or PORTFOLIO I. Explain briefly.

5. (2) A second portfolio has 100% invested in X. The third option is to invest completely in a risk-free asset yielding 5%. As a risk neutral investor, you would pick

1. Portfolio I (25% in X and 75% in Y),
2. Portfolio II (100% X),
3. Portfolio III (Risk free Money Market earning 3% for sure)

Explain your criterion.