Problem 2. The monthly return rates of assets 1,2, and 3 have a joint distribution with the mean return rates r = 0.01, r2 = 0.005, and r2 = 0.02 and with the covariance matrix. 0.001 0 -0.0005 C= 0 0 0 -0.0005 0 0.002 Suppose shorting is allowed. (a) Determine the market portfolio and describe the set of efficient portfolios. Which theoretical result helps us do that? (b) What is the range of expected values which the efficient portfolios may have? Problem 2. The monthly return rates of assets 1,2, and 3 have a joint distribution with the mean return rates r = 0.01, r2 = 0.005, and r2 = 0.02 and with the covariance matrix. 0.001 0 -0.0005 C= 0 0 0 -0.0005 0 0.002 Suppose shorting is allowed. (a) Determine the market portfolio and describe the set of efficient portfolios. Which theoretical result helps us do that? (b) What is the range of expected values which the efficient portfolios may have