3. Three investments are provided as follow: Investment X : Risky asset; 15% return, 1600%2 variance Investment Y : Risky asset; 10% return, 225%2 variance Investment Z: Risk-free asset; 6% return The correlation of the return for X and Y is exactly 1. (d) ( 2 points) The risk-free rate you obtained from P2 is higher than that from Investment Z. Will anyone actually invest in investment Z then, why? Assume that everyone thinks that higher return is always better. Because of such an action, what do you think for the future price of the portfolio P2; will it increase or decrease? 3. Three investments are provided as follow: Investment X : Risky asset; 15% return, 1600%2 variance Investment Y : Risky asset; 10% return, 225%2 variance Investment Z: Risk-free asset; 6% return The correlation of the return for X and Y is exactly 1. (d) ( 2 points) The risk-free rate you obtained from P2 is higher than that from Investment Z. Will anyone actually invest in investment Z then, why? Assume that everyone thinks that higher return is always better. Because of such an action, what do you think for the future price of the portfolio P2; will it increase or decrease