Question 3: (Points: 15) Imagine you are a financial analyst. Mr. Green (one of your clients) sets up an appointment with you to discuss how he can allocate his wealth between two risky assets and a risk free asset. You provide him with the following set of information: : Standard Deviation of Asset) (Note that E (ri): Expected Return on Asset i and Asset A. E(ra) = 10%; = 0.2 Asset B: E() = 25%; Og = 0.5 Asset C: E(C) = 5%; 0c = 0 Correlation between two risky assets-PaB-0.2 Mr. Green thinks that a combination of two risky assets will result in a more risky portfolio. Your job is to convince Mr. Green that adding two risky assets (using the above data) will result in a diversified portfolio. In addition you also need to explain to Mr. Green how he should allocate his wealth between risky and risk free assets. To do that, answer the following questions: Question 3: (Points: 15) Imagine you are a financial analyst. Mr. Green (one of your clients) sets up an appointment with you to discuss how he can allocate his wealth between two risky assets and a risk free asset. You provide him with the following set of information: : Standard Deviation of Asset) (Note that E (ri): Expected Return on Asset i and Asset A. E(ra) = 10%; = 0.2 Asset B: E() = 25%; Og = 0.5 Asset C: E(C) = 5%; 0c = 0 Correlation between two risky assets-PaB-0.2 Mr. Green thinks that a combination of two risky assets will result in a more risky portfolio. Your job is to convince Mr. Green that adding two risky assets (using the above data) will result in a diversified portfolio. In addition you also need to explain to Mr. Green how he should allocate his wealth between risky and risk free assets. To do that, answer the following questions