2. As a portfolio manager, your objective is to minimize risk: min21[w112+w22] while maintaining a particular level of expected return: w11+w22=0where0wi1fori=1,2 You do this by optimally choosing the portfolio weights on the two assets, w1 and w2. This is a two asset portfolio (i.e., the portfolio weights sum to one) where the returns of the two assets are denoted by 1 and 2, respectively. The expected returns of this portfolio is 0. The parameters 12 and 22 are the variances of asset 1 and asset 2, respectively. Using the Lagrange Multiplier method, find the excess risk in your portfolio for a 1% increase in portfolio expected return if the parameters take the following values: - 12=36 and 22=4. - 1=8% - 2=2% - 0=6% 2. As a portfolio manager, your objective is to minimize risk: min21[w112+w22] while maintaining a particular level of expected return: w11+w22=0where0wi1fori=1,2 You do this by optimally choosing the portfolio weights on the two assets, w1 and w2. This is a two asset portfolio (i.e., the portfolio weights sum to one) where the returns of the two assets are denoted by 1 and 2, respectively. The expected returns of this portfolio is 0. The parameters 12 and 22 are the variances of asset 1 and asset 2, respectively. Using the Lagrange Multiplier method, find the excess risk in your portfolio for a 1% increase in portfolio expected return if the parameters take the following values: - 12=36 and 22=4. - 1=8% - 2=2% - 0=6%