3. Consider a portfolio comprised of two risky assets. Assume that the expected return and standard deviation of the return on asset 1 are 2% and 2%, respectively. Assume that the expected return and standard deviation of the return on asset 2 are 1% and 4%, respectively. Assume that the correlation between the returns on asset 1 and asset 2 is 0.7. Assume that you can short sell any asset. (a) Create a table showing the expected return and standard deviation of the return on the portfolio for weights on asset 1 equal to -1.0,-0.5, 0.0, 0.5, 1.0, 1.5 and 2.0. (b) Plot the minimum variance frontier (c) Are assets 1 and 2 located on the minimum variance frontier? Explain your answer. (d) Are assets 1 and 2 located on the efficient frontier? Explain your answer. (e) If an investor puts 150% of the portfolio in asset 1, is the investor choosing a portfolio on the efficient frontier? Give the intuition for your answer. (f) If an investor puts 150% of the portfolio in asset 2, is the investor choosing a portfolio on the efficient frontier? Give the intuition for your answer. 3. Consider a portfolio comprised of two risky assets. Assume that the expected return and standard deviation of the return on asset 1 are 2% and 2%, respectively. Assume that the expected return and standard deviation of the return on asset 2 are 1% and 4%, respectively. Assume that the correlation between the returns on asset 1 and asset 2 is 0.7. Assume that you can short sell any asset. (a) Create a table showing the expected return and standard deviation of the return on the portfolio for weights on asset 1 equal to -1.0,-0.5, 0.0, 0.5, 1.0, 1.5 and 2.0. (b) Plot the minimum variance frontier (c) Are assets 1 and 2 located on the minimum variance frontier? Explain your answer. (d) Are assets 1 and 2 located on the efficient frontier? Explain your answer. (e) If an investor puts 150% of the portfolio in asset 1, is the investor choosing a portfolio on the efficient frontier? Give the intuition for your answer. (f) If an investor puts 150% of the portfolio in asset 2, is the investor choosing a portfolio on the efficient frontier? Give the intuition for your