Consider a market model with two securities S1 and S2 and three scenarios, 1,2 and 3 such that P(1)=P(3)=P(2)/2=0.25 S1(0)=8;S1(1)=6512for1for2,for3 S2(0)=10;S2(1)=11119for1for2for3 1. Calculate the quantities 12,22 and 12. 2. Compute the weights in the portfolio with minimum risk for the data above. Does this portfolio involve short selling? 3. Compute the expected return and the variance (risk) of the portfolio obtained in part b). 4. Compute the weights in the portfolio with minimum risk for the data above, under the condition that short selling is forbidden. Determine the expected return and the variance of the portfolio. Consider a market model with two securities S1 and S2 and three scenarios, 1,2 and 3 such that P(1)=P(3)=P(2)/2=0.25 S1(0)=8;S1(1)=6512for1for2,for3 S2(0)=10;S2(1)=11119for1for2for3 1. Calculate the quantities 12,22 and 12. 2. Compute the weights in the portfolio with minimum risk for the data above. Does this portfolio involve short selling? 3. Compute the expected return and the variance (risk) of the portfolio obtained in part b). 4. Compute the weights in the portfolio with minimum risk for the data above, under the condition that short selling is forbidden. Determine the expected return and the variance of the portfolio