You invest in a portfolio of two stocks. The variance-covariance matrix of the two stocks is given by : Stock A Stock B 0.05 0.15 Stock A 0.2 Stock B 0.05 The expected return of the two stocks are 0.1 and 0.08, respectively. Riskfree interest rate is 3%. a) If you invest 200 $ in Stock A, 300 $ in Stock B, and 100 in risk free asset (i.e. cash). Compute the volatility of your total portfolio (with both stocks and riskfree asset). b) What is the composition of the minimum variance stock portfolio? What is its expected return? c) What is the composition of the tangent portfolio? d) If Jack invests in a portfolio composed of cash and the tangent portfolio, and he estimates that the volatility of this portfolio is 0.16. What is the expected return of this portfolio? e) What is the Sharpe ratio of the above portfolio? What is the percentage of cash that Jack holds in the above portfolio? You invest in a portfolio of two stocks. The variance-covariance matrix of the two stocks is given by : Stock A Stock B 0.05 0.15 Stock A 0.2 Stock B 0.05 The expected return of the two stocks are 0.1 and 0.08, respectively. Riskfree interest rate is 3%. a) If you invest 200 $ in Stock A, 300 $ in Stock B, and 100 in risk free asset (i.e. cash). Compute the volatility of your total portfolio (with both stocks and riskfree asset). b) What is the composition of the minimum variance stock portfolio? What is its expected return? c) What is the composition of the tangent portfolio? d) If Jack invests in a portfolio composed of cash and the tangent portfolio, and he estimates that the volatility of this portfolio is 0.16. What is the expected return of this portfolio? e) What is the Sharpe ratio of the above portfolio? What is the percentage of cash that Jack holds in the above portfolio?