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The following tables shows data relating two companies, X and Y. Company Expected return (%) Variance (%) X 10 2 Y 25 4 The correlation

The following tables shows data relating two companies, X and Y.

Company

Expected return (%)

Variance (%)

X

10

2

Y

25

4

The correlation between Share X and Y is positive 25%.

Using the information in the above table answer the following questions:

Calculate weights for the minimum variance portfolio .

3 marks

Calculate the expected return of the minimum variance portfolio.

1 marks

Calculate the standard deviation of the minimum variance portfolio.

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