2Consider an investment universe consisting of three assets with the following characteristics:AssetExpected returnsStandard deviations16%22%214%15%318%20%Thecorrelationsbetween the assets are= 0.5,= 0.35, and= 0.25.1,22,31,3a.What is the expected return and standard deviation of an equally weighted portfolio invested in allthree assets?b.What is the diversification benefit for an investor that switches from a full allocation to asset 1 to theequally weighted portfolio ?c.Would an investor with quadratic utility and a risk aversion parameterA= 6chose to invest all hercapital in asset 3 or in the equally weighted portfolio?d. What about an investor with quadratic utility and a risk aversion parameterA= 2?e.What is the covariance between the returns on the equally weighted portfolio invested in all three assetsand the returns of an equally weighted portfolio invested only in assets 1 and 3