2. You are given with the following information: you have three funds, the 0.35 expected rates of return are shown as the vector 0.18 and the variance- 0.15 0.269 0.104 0.015 covariance matrix 0.104 0.205 0.012 that identifies the risk they are asso- 0.015 0.012 0.198 ciated with, answer the following questions: 1) What is your optimal allocation for these three funds if you don't like risk and yet you like the expected rates of return? How do you call this analysis?! 2) Is the normality assumption necessary for the analysis? 3) Suppose you are risk neutral (that is, you don't care about risk), what would you do? 2. You are given with the following information: you have three funds, the 0.35 expected rates of return are shown as the vector 0.18 and the variance- 0.15 0.269 0.104 0.015 covariance matrix 0.104 0.205 0.012 that identifies the risk they are asso- 0.015 0.012 0.198 ciated with, answer the following questions: 1) What is your optimal allocation for these three funds if you don't like risk and yet you like the expected rates of return? How do you call this analysis?! 2) Is the normality assumption necessary for the analysis? 3) Suppose you are risk neutral (that is, you don't care about risk), what would you do