3. Theoretically, the standard deviation of a two risky asset portfolio can be reduced to what level (%)? Explain. Realistically, is it possible to reduce the standard deviation to this level? Explain (Hint: I caution you that this question is not related to the systematic and non-systematic risk discussions) 4. State Markowitz's mean-variance criterion Give some numerical examples of how the criterion would be applied. 5. Discuss what the separation theorem is; and does the separation theorem make harder or easier for the portfolio manager by using the utility theory to produce an efficient portfolio suitable for the investor's level of risk tolerance? 6. Toby and Hannah are two risk-averse investors. Toby is more risk-averse than Hannah. Draw one indifference curve for Toby and one indifference curve for Hannah on the same graph. Show how these curves illustrate their relative levels of risk aversion