You wanted to build a portfolio of two assets A and B. A is expected to give an annual return of 10% and B is expected to give an annual return of 30%. The annual standard deviation of A and B are 10% and 30% respectively. The correlation between the two is expected to be -0.5 . You can compute covariance between A and B as the product of correlation coefficient, standard deviation of A and standard deviation of B i. Compute the expected return of the portfolio if you invest 30% in A and 70% in B. (1 Mark) ii. Compute the variance of the portfolio if you invest 30% in A and 70% in B. (3 Marks). iii. How much should be invested in A if the variance of the portfolio needs to be the minimum? (5 Marks) Qtext : Answer the following Questions i. What is name of the process associated with testing a trading strategy on the historical data called? (1 Mark) ii. Explain three important advantages of the above process in the context of trading strategies. (3 Marks) iii. Name the parameters associated with Bollinger Bands Trading Strategy. (3 Marks) iv. Create one trading rule associated with the Bollinger Bands strategy. The strategy should contain the timing of long, exiting the long, short and exiting the short positions. (2 Marks)