1. The table below presents the returns on stocks ABC and XYZ for a five-year period.

2. Year	ABC	XYZ
   1	0.16	0.12
   2	0.42	0.62
   3	-0.02	-0.23
   4	-0.26	-0.62
   5	0.48	0.52

   1. Suppose the risk-free rate is 6%. Also assume the expected return equals to average return for each stock. Calculate 1) the weights for the two stocks in the optimal risky portfolio; 2) the return and risk (standard deviation) of the portfolio. (10)
3. 2. If a client demands a $100,000 complete portfolio with an expected return of 25%. Use information and your answer above. Find the amount of money invested in stocks ABC and XYZ, and the risk-free asset. (8)
4. 3. What is the risk (standard deviation) and return of the complete portfolio you find in part e? (4)