1. You are given the following data on return, risk (i.e., standard deviation) and correlations of the assets A, B and C. Return Risk A B 22.50000% 11.000000% 18.1000% 22.16416% 17.578396% 15.1225% A 1.0000 B -0.4787 Correlations B A -0.4787 -0.7107 1.0000 -0.2774 -0.7107 -0.2774 1.0000 1. Which asset is inefficient? Plot the three assets in a graph in order to determine this. (Use the Excel spreadsheet, HW12-Excel.xls, uploaded with this assignment) 2. Compute the variance-covariance matrix for the three assets. (Use the Excel spreadsheet, HW12-Excel.xls, uploaded with this assignment) 3. By varying the weights of A and C in a portfolio that only consists of these two assets, find the corresponding values for the portfolio's return (E (Tp)) and risk (op). (Use the Excel spreadsheet, HW12-Excel.xls, uploaded with this assignment) Weight of A Weight of C E() 1.0 0.0 % % 0.9 0.1 ..% : . : 0.0 1.0 % 4. Plot the efficient frontier by using the result in question 3. (i.e., plot the risk-return combinations that you obtained in part (c).)