a. Consider a financial market consisting of three risky assets. The covariance matrix and expected rates of returns are given by: C=210110001and=212 (i) Determine the portfolio among all possible portfolios that are equally weighted in assets 1 and 2 that has the smallest variance. (ii) Find the mean rate of return of this portfolio. (iii) Suppose w1=312161 and w2=319492 are two minimum variance portfolios. Use the two fund theorem to determine whether the portfolio in (i) lie on the minimum variance frontier. [3+1+3=7 marks ] a. Consider a financial market consisting of three risky assets. The covariance matrix and expected rates of returns are given by: C=210110001and=212 (i) Determine the portfolio among all possible portfolios that are equally weighted in assets 1 and 2 that has the smallest variance. (ii) Find the mean rate of return of this portfolio. (iii) Suppose w1=312161 and w2=319492 are two minimum variance portfolios. Use the two fund theorem to determine whether the portfolio in (i) lie on the minimum variance frontier. [3+1+3=7 marks ]