u 2. You form a portfolio from four assets (A1 to A4). Your initial investment is $50,000 and you invest 15% in A1, 20% in A2, 40% in A3, and 25% in A4. Asset prices at the time of the investment were $80, $90, $100, and $85 respectively. At the end of a period, the prices are $93, $80, $130, and $87 respectively. Determine the total return and total return on investment for the portfolio. 4. Suppose there are three uncorrelated assets. Each has a variance of 1.0 and expected rates of return are 1, 2, and 3, respectively. For this example, short sales are allowed. Do the following: a. Find the minimum variance portfolio for the following desired expected portfolio rates of return: 1.0, 1.5, 2.0, 2.5, and 3.0. b. Sketch these on the return versus risk plot (you will need to use the standard deviation of the portfolio, which clearly equals mlwl"2+w2"2+w3\"3), where M are the weights)