My = % to 2 decimal places y = % to 2 decimal places (10 points) Additionally, a risk-free asset with return r = 5% is available. On a blank piece of paper, sketch a risk-return diagram, where you should mark the following: the three risky assets #1, #2, #3 and the risk-free asset; (i) the portfolio line for the risky assets #1 and #2; (ii) the minimum variance line for all risky assets; (iii) the smallest variance portfolio in the risky assets; (iv) the market portfolio; (v) the efficient frontier for portfolios in the risky assets; (vi) the efficient frontier for four-asset portfolios. Use the numbers (i)-(vi) and (#1)-(#3) as labels. Consider three risky assets described as follows. Asset i Mi, Return on Asset i Oi, Risk in Asset i 1 7% 12% 2 23% 14% 3 17% 20% The correlation coefficients are P12 = 21%, P13 = 63%, P23 = 27%. (a) Construct a covariance matrix for these three risky assets: C = (b) Find the expected value and the standard deviation of the rate of return on the portfolio consisting of three assets with weights W = 0.25, W = 0, W3 = = 0.75.