You are considering investing in a T-bill that pays a rate of return of 0.05 and a risky portfolio, P, constructed with 2 risky securities, X and Y. The weights of X and Y in P, respectively. X has an expected rate of return of 0.14 and a variance of 0.01, and Y has an expected rate of return of 0.1 and a variance of 0.0081. A = 4 CORRELATION =.2

CALCULATE

OPTIMAL PORTFOLIO RETURN

OPTIMAL PORTFOLIO RISK

COMPLETE OPTIMAL PORTFOLIO RISK AND RETURN