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2. Perform the following tasks: a) Consider a portfolio of three funds, namely funds 1, 2 and 3, with weights W, W and W3,

2. Perform the following tasks: a) Consider a portfolio of three funds, namely funds 1, 2 and 3, with weights W, W and W3, respectively. Construct the portfolio variance. [4 marks] b) Construct in the second fund's contribution, i.e. fund 2, to the variance of the portfolio. [6 marks] c) Now assume that fund 1 is the investment in the Treasury bills. Construct the portfolio variance. [2.5 marks]

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