This assignment uses the same index return data as the 4-asset assignment; it just considers the addition of a 2% riskless rate of return as a fifth asset. Build upon the Solver template you used for the last assignment.

Before you start working with the data, take a moment to think about how the opportunity set is affected by the addition of a riskless asset. Finding the optimal portfolios using the data and Solver will produce the same general graph as that of the CAPM, meaning that the optimal portfolios are on the tangency line emanating from the riskless rate. Keep that in mind when answering the questions.

Most questions require you to write an explanation; others ask you to fill in the blanks with a number. If you do not provide a meaningful explanation, you will not receive credit. When entering a number, wait until the last step to round your answer.

You are allowed -- and encouraged -- to compare your answers with other students. However, you must do your own work and submit your own answers.

Country	Annualized Mean Return (in %)	Annualized Std Dev of Return (in %)
US	6.12	15.28
UK	3.12	23.11
China	20.16	28.02
Canada	8.76	20.13

The pairwise return correlations matrix is:

	US	UK	China	Canada
US	1.00	0.72	0.45	0.81
UK	-	1.00	-	-
China	-	0.52	1.00	-
Canada	-	0.73	0.55	1.00

Consider the addition of a 2% riskless rate as the fifth asset. For an expected return of 7%, using the five assets and allowing for short selling, what is the minimum standard deviation of return? (Report your answer as a percentage, rounded to two decimal places. For example, enter "10.38" for 10.38%.)