Consider three stocks: Colonel Motors (C), Separated Edison (S), and Unique Oil (U). Consider riskless lending/borrowing at 6%. Std. Dev. . 6% Asset Expected Return Colonel Motors (C) 12% Separated Edison (S) 8% 8 Unique Oil (U) 18% 3% 15% The variance-covariance matrix is: Colonel Motors (C) Separated Edison (5) Unique Oil (U) 30 8 Colonel Motors (C) Separated Edison (S) Unique Oil (U) 20 17 8 9 20 17 240 Find the composition of the optimal portfolio obtained by combining the three stocks, knowing that short selling is allowed. What are the proportion of your funds invested in stocks C, S, and U (in this order)? (Hint: Use Excel and the in-class examples) Question 3 5 pts Continuation of Question 1. The variance of returns of the optimal portfolio is: O 30.45 0 29.77 O 27.95 O 33.48