Problem 2. (8 pts) Suppose that in the financial market there are two risky stocks Sy and S2 with current prices Si(0) = $50 and S2(0) = $100. You want to invest $1000 in a portfolio V of the two stocks. You have the following four scenarios about the returns of the stocks after one year: Scenario Probability 0.2 0.3 Ki -10 % -20 % -5 % 10 % K2 10 % 20 % -5 % 5 % 0.4 0.1 a) (4 pts) You buy 12.5 shares of stock S and with the remainder of the money you buy shares in stock S2. Find My and of. (Do not round your answer) b) (4 pts) How many shares of each stock you should buy in order for your portfolio to have the minimum possible variance? (Round to the nearest thousandth) Problem 2. (8 pts) Suppose that in the financial market there are two risky stocks Sy and S2 with current prices Si(0) = $50 and S2(0) = $100. You want to invest $1000 in a portfolio V of the two stocks. You have the following four scenarios about the returns of the stocks after one year: Scenario Probability 0.2 0.3 Ki -10 % -20 % -5 % 10 % K2 10 % 20 % -5 % 5 % 0.4 0.1 a) (4 pts) You buy 12.5 shares of stock S and with the remainder of the money you buy shares in stock S2. Find My and of. (Do not round your answer) b) (4 pts) How many shares of each stock you should buy in order for your portfolio to have the minimum possible variance? (Round to the nearest thousandth)