<s>[INST] Richard wants to minimize the risk of his investments. Richard wants to invest in two funds, X and Y, which have the following correlations with the market and each other:
Correlation between fund X and the market: 0.8
Correlation between fund Y and the market: 0.9
Correlation between fund X and fund Y: 0.7
The volatilities of fund X and fund Y are 0.04 and 0.06 respectively. Using a two-asset portfolio model,
a. Calculate the portfolio return.
b. Calculate the portfolio standard deviation.
Given that the expected return of the market is 10%, and Richard wants the portfolio return to be equal to the market return.[/INST]