2. For this question you are to use the data in the spreadsheet "PS3_Q2.xls". This provides quarterly data on the returns to three portfolios: the mar- ket portfolio, a portfolio of small-cap stocks and a portfolio of value stocks. The data runs from the first quarter of 2008 until the second quarter of 2019. The returns have been annualized. (a) Estimate the means, variances and covariances of the returns using historical data. Report these results. (b) Now using the inputs from 2a and the spreadsheet "eff3.xls" to calculate the implied MVE portfolio that combines these portfo- lios to provide the portfolio with highest Sharpe ratio. Assume that the risk-free rate is 2%. Do the weights look reasonable to you? Would you use these to construct a suggested MVE portfolio today