Question 6 24 Consider a financial market which consists of two stocks A and B. Moreover, suppose that the possible rate return for the two stocks are given as follows: State of Probability of Return on Return on Economy State of Economy Stock A Stock B Bear Normal 30% -0.020 0.034 Bull 50% 20% 0.138 0.062 0.218 0.092 6.1 Determine the expected value and standard deviation of the rates of return for each asset[6] 6.2 Determine the covariance between asset A and B. [2] 6.3 Suppose that and WB represent the proportions fufnds invested in stocks A and Brespectively. Formulate the Markowitz problem to find the weightsfeasible portfolio with the minimum variance and expected rate of return restriction on short-selling. [3] 6.4 Derive the Lagrange equations to find the weights for the minimum-variance portfolioWritePa system of linear equations that will result in matrix form. [6] 6.5 Determine the weights of the MVP by choosing suitable values for the Lagrangian multiplie[s] and 6.6 Determine the expected rate of return and standard deviation of the rates of return of the MVP. [3]