1. Consider an efficient frontier that is described by the function E[Rp] = 2% + Vop 0.05. The minimum variance portfolio is assumed to be given by op = 5%. Consider an investor that has mean-variance preferences given by E[Rp] - - OMA where the level of risk tolerance is given by T = 5. (a) Find the expected return and variance of the portfolio that the investor will choose for the efficient frontier described above. Suppose the investor can now lend and borrow at a risk-free rate Rf = 1%. (b) Find the tangency portfolio of the efficient frontier that all investors will choose to invest in. (c) Consider investors with different risk tolerance levels given by TE {1,5, 10}. Find the optimal portfolios for these investors. How does the level of risk tolerance influence their choice? 1. Consider an efficient frontier that is described by the function E[Rp] = 2% + Vop 0.05. The minimum variance portfolio is assumed to be given by op = 5%. Consider an investor that has mean-variance preferences given by E[Rp] - - OMA where the level of risk tolerance is given by T = 5. (a) Find the expected return and variance of the portfolio that the investor will choose for the efficient frontier described above. Suppose the investor can now lend and borrow at a risk-free rate Rf = 1%. (b) Find the tangency portfolio of the efficient frontier that all investors will choose to invest in. (c) Consider investors with different risk tolerance levels given by TE {1,5, 10}. Find the optimal portfolios for these investors. How does the level of risk tolerance influence their choice