Q12Consider a two asset portfolio. An investor allocates a fraction of her wealth in asset B and the rest in asset A. Asset A has a risk of 01 and asset B has a risk of 02. The two assets have a correlation of p. 1. Characterize the minimum variance portfolio. You must indicate the exact allocation for each asset. (10 pts.) 2. Suppose p = -1. Show how you can determine that your reported allocation is indeed a minimum point. (10 pts.) Q12Consider a two asset portfolio. An investor allocates a fraction of her wealth in asset B and the rest in asset A. Asset A has a risk of 01 and asset B has a risk of 02. The two assets have a correlation of p. 1. Characterize the minimum variance portfolio. You must indicate the exact allocation for each asset. (10 pts.) 2. Suppose p = -1. Show how you can determine that your reported allocation is indeed a minimum point. (10 pts.)