1. Jilian entered a 30-year mortgage loan 10 years ago. The monthly payment required is $1,349.13. She decided to start making payments of $1,800.00 every month. If she keep making $1,800/month, how many payments will she have to make to pay off the loan? The answer must include the last payment of $217.28.
2. An investor can design a risky portfolio based on two stocks, Y and Z. The standard deviation of the return on stock Y is 25%, while the standard deviation on stock Z is 35%. the correlation coefficient between the return on Y and Z is 0.40. the standard deviation of return on the minimum variance portfolio is?