1. Suppose you wish to invest in a portfolio that has three risky assets. You are given the following information on annualized returns Expected Return Standard Deviation Asset 1 4.0% 1.0% Asset 2 4.5% 0.9% Correlations Asset 2 Asset 3 4.8% 1.2% Asset 1 Asset 3 Asset 1 Asset 2 Asset 3 -0.2 -0.5 0.9 a) Plot the efficient frontier using an update of the MATLAB file portfolio1.m. b) What are the weights on the most efficient portfolio with a target return of 4.5%? c) What are the weights on the most efficient portfolio with a target risk of 0.8%? d) How do your answers change above if you can also invest in a riskless asset with a return of 3.6% and you can invest up to 115% in risky assets? Please see MATLAB command q=setBudget(p, 0, 1.15) Please see Chapter 4 in MATLABs Financial Toolbox user guide for many examples on portfolio optimization. Please update portfolio1.m and portfolio2.m to use built-in commands in MATLAB to construction efficient frontiers. 1. Suppose you wish to invest in a portfolio that has three risky assets. You are given the following information on annualized returns Expected Return Standard Deviation Asset 1 4.0% 1.0% Asset 2 4.5% 0.9% Correlations Asset 2 Asset 3 4.8% 1.2% Asset 1 Asset 3 Asset 1 Asset 2 Asset 3 -0.2 -0.5 0.9 a) Plot the efficient frontier using an update of the MATLAB file portfolio1.m. b) What are the weights on the most efficient portfolio with a target return of 4.5%? c) What are the weights on the most efficient portfolio with a target risk of 0.8%? d) How do your answers change above if you can also invest in a riskless asset with a return of 3.6% and you can invest up to 115% in risky assets? Please see MATLAB command q=setBudget(p, 0, 1.15) Please see Chapter 4 in MATLABs Financial Toolbox user guide for many examples on portfolio optimization. Please update portfolio1.m and portfolio2.m to use built-in commands in MATLAB to construction efficient frontiers