Suppose there are three assets, X,Y, and Z.

(A) Suppose there are three assets, X,Y, and Z. The cevariances of their re turns are Gamay,\" 0'3", and their variances are 03,65, 03. Show that if you in vest can: in asset X, my in Y, and Leg in asset Z that the variance of the port felie return is Mike. That is, write out all of the terms of the variance, and show that w'Ew is identical. (B) New suppose we have the same three assets X,Y,Z. If we add a riskfree asset F with return \"Ff, shew that the expected pertfelie return can be writ- ten as: r; +w'Ui 13;), where R is the vector of expected returns for X,Y,Z and w is the vector of weights in X,Y,Z, and that this is equivalent to writing the expected return as r; + wp(E[r,,] rf)