1. Here are some characteristics of two securities:Security 1 E(R1) = .10 21 = .0025Security 2 E(R2) = .16 22 = .0064Answer the following questions:(a) Suppose the investor can only hold a single stock.(i) Which security should she choose if she wants to maximize expected returnsonly?(ii) Which security should she choose if she wants to minimize risk only?(b) Suppose the correlation of returns is -1.0, what fraction of the investors networth should be held in security 1 and in security 2 in order to produce a zerorisk portfolio?(c) What is the expected return on the portfolio in (c)? How does this comparewith the riskless return on Treasury Bills of 10%? Would an investor who is riskaverse and likes high expected return want to invest in Treasury Bills?