Question 2: Given three securities: Expected Return Stock 1 Stock 2 0.20 Stock 3 0 .08 0.15 Standard Deviation 0.20 0.30 0.10 Correlation of Returns Stock 1 Stock 2 Stock 3 1.00 0.20 0.30 1. 000 .80 1.00 (c) Suppose the risk-free rate is 5%. Someone claims you that an equally weighted portfolio of Stocks 1 to 3 is the tangency portfolio of these three stocks. Do you believe his claim? Justify your answer. Question 2: Given three securities: Expected Return Stock 1 Stock 2 0.20 Stock 3 0 .08 0.15 Standard Deviation 0.20 0.30 0.10 Correlation of Returns Stock 1 Stock 2 Stock 3 1.00 0.20 0.30 1. 000 .80 1.00 (c) Suppose the risk-free rate is 5%. Someone claims you that an equally weighted portfolio of Stocks 1 to 3 is the tangency portfolio of these three stocks. Do you believe his claim? Justify your