(a) explain two Key assumptions of markowitz's portfollo theory. ouscuss one empirical implicativn tir each of the assumptions (b) Consiaering the positiuns specitied in the Table below, fill in the roauined inthinsic vaikes and provido a rough sketch of the combination for a range of expiry pricesspanning the given oxercue phives (6) Me phie of wand stock is cuirently f150. orer the next yeari the stock phce will increase by 8% ir decrease by 8%. Rluk-neutral Phbablity tor an upward price movement is 0.75 . Risk thee interest rate is 4\%. per year. Anale woula like to ouy a put on the Stock to lock in a guaranteed minimum value of $150 at year-end. (1) Suppose the desrod put option with exercise pice of $150 is traded. What is the phoit /loss on the combination of Stock ana put optien if the stock price at year-ena is \pm 100 ? (ii) Angle does not fina put options in wana stock. What combination of stock and risk-free loan positions ensures Angle a payoff eaulal to the payoff that would be phrided by a put option with exercue phic of \pm 150