3. Based on estimates of asset means, variances, and covariances, you implement mean-variance optimization for a set of three assets. In order, the assets are stocks, Treasury bonds, and agency bonds. When you use the formula W = 7 l-l 1 to calculate weights, your output is 2.20 w* -147.85 155.50 Interpret this output by providing the portfolio weight that will be invested in each asset and how much you need to borrow/lend at the risk-free rate. Given that these portfolio weights seem pretty unreasonable, discuss what features of the data may contribute to the extreme weights implied by mean-variance optimization. Describe alternative portfolio optimization techniques that may help to fix the issues with mean-variance optimization. 3. Based on estimates of asset means, variances, and covariances, you implement mean-variance optimization for a set of three assets. In order, the assets are stocks, Treasury bonds, and agency bonds. When you use the formula W = 7 l-l 1 to calculate weights, your output is 2.20 w* -147.85 155.50 Interpret this output by providing the portfolio weight that will be invested in each asset and how much you need to borrow/lend at the risk-free rate. Given that these portfolio weights seem pretty unreasonable, discuss what features of the data may contribute to the extreme weights implied by mean-variance optimization. Describe alternative portfolio optimization techniques that may help to fix the issues with mean-variance optimization