explain this step by step, thanks

You are the proud owner of portfolio C, which you have created by investing a fraction x of your wealth in risky asset A, and the remaining fraction in risky asset B. You know the expected return of C is TC = x'rA + (1 3011;, and the variance of the return ofC is 05 = xzcrA2 + (1 30205 + 2x(1 x)Cov(A, B). Suppose that the returns of A and B are perfectly positively correlated. a. Use Cov(A, B) = pcrAaB, where p is the correlation coefficient between A and B, to simplify 062. b. Provide an expression for ac. [Hint: you might find it useful to note that (a i b)2 = a2 i Zab + b2] Use your answer in part b to solve for x in terms of 0A, 03 and 0c- Substitute your answer from part c into the expected return of C and show that the budget constraint is linear [ rc = constant + slope - ac). Sketch the budget constraint on a graph. If investor 1 is more risk averse compared to investor 2, how do their optimal bundles compare? Can you guess what the budget constraint would look like if p = 1? 0