You can invest in asset 1 with 1 = 0.1, 1 = 0.3 and asset 2 with 2 = 0.2, 2 = 0.5, with correlation = 0.2.

a) Find the minimum variance point and the portfolio strategy that attains it.

b) Repeat the previous problem if a risk-free asset with return R = 0.05 is also available

c) Find the portfolio weights in the optimal mutual fund P for the two risky assets from the two previous problems