6. (Wild cats) 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 $ar{r}$ is the same for each asset, but the variances are different. The
return on asset $i$ has a variance of $sigma_i^2$ for $i = 1, 2, dots, n$.
(a) Show the situation on an $ar{r}$-$sigma$ diagram Describe the efficient set.
(b) Find the minimum-variance point Express your result in terms of
$ar{sigma}^2 = left(sum_{i=1}^{n} frac{1}{sigma_i^2}
ight)^{-1}$
