please check the attached file

\w/ wuyyvvv uncw :4qu uvvaLLvu "Av", "on va/Luv' "A "w vyuuueu 12v; uuuu, w "A, weight on asset C greater than or less than before? Why? [Hintz No need to solve Lucy's optimal portfolio. Just make the intuitive arguments. Graphs may help.] 2. Multiple assets are traded in the market. Financial analysts calculate that A and B are two portfolios in the minimum variance portfolio set. Their characteristics are described in the table below. In addition7 the correlation coefficient between A and B is pA B = 0.25. (a) Martin and Lucy are two riskaverse investors. Suppose that Martin is less risk averse than Lucy, will Lucy put a higher weight on asset A than Martin? Now, suppose that there is a riskfree asset F, whose rate of return is 0.02. 1 Portfolio Expected rate of return (lE(rp)) Standard Deviation (a) A 0.1 1 B 0.3 4 (b) In their optimal risky portfolios, will Lucy put a higher weight on asset A than Martin? [Hintz the risky portfolio does not include the riskfree asset] (c) Lucy has a weird preference. She will choose one and only one risky asset to construct a new portfolio with the riskfree asset. Will she choose A or B