Variance Covariance Expected Return 0.07 0.16 0.2 Stock Stock 1 Stock 2 Risk-free asset 0.10 0.25 0.2 0.05 0.00 Table 2: Data Statistics (a) Construct the optimal risky portfolio for the investor i. (Hint: check the correlation between two stocks) [10 points] (b) Construct the optimal complete portfolio for the investor i. [10 points] Variance Covariance Expected Return 0.07 0.16 0.2 Stock Stock 1 Stock 2 Risk-free asset 0.10 0.25 0.2 0.05 0.00 Table 2: Data Statistics (a) Construct the optimal risky portfolio for the investor i. (Hint: check the correlation between two stocks) [10 points] (b) Construct the optimal complete portfolio for the investor i. [10 points]