Suppose there are n assets which are uncorrelated. (They might be n different “wild cat” oil well prospects.) You may invest in any one, or in any combination of them. The mean rate of return r¯ is the same for each asset, but the variances are different. The return on asset i has a variance of σ2i for i = 1, 2, . . . , n. (a) Show the situation on an r¯-σ diagram. Describe the efficient set. (b) Find the minimum-variance point. Express your result in terms of

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