6. Asset 1 has an expected mean return of µ1 =9%, standard deviation of its return is σ1 = 6%. Asset 2 has an expected mean return of µ2 = 14%, with a standard deviation of σ2 = 11%. The correlation coefficient between returns on these two assets is rho1,2 = −1. If you invest all your financial wealth on a portfolio holding only these two assets such that w1 + w2 = 1. How should you choose weights w1and w2 such that the portfolio is risk free (i. e., σp = 0)? In that scenario, what is your expected return on that portfolio, E (rp)?

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities.required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.