1. Suppose there are N assets, whose expected returns are all r. Assume that the risk (standard deviation) of each asset is o. (1) If the expected returns are uncorrelated, what is the best portfolio in terms of Sharpe ratio? What happened when N +00? You can assume that you have 1 million dollars. (Sharpe=expected return (Hint: As the expected return is always r, maximizing Sharpe ratio is equivalent to minimizing risk) (2) If the expected returns are correlated and the pairwise correlation coefficients are all p, what is the best portfolio? What happened when N +o? 1. Suppose there are N assets, whose expected returns are all r. Assume that the risk (standard deviation) of each asset is o. (1) If the expected returns are uncorrelated, what is the best portfolio in terms of Sharpe ratio? What happened when N +00? You can assume that you have 1 million dollars. (Sharpe=expected return (Hint: As the expected return is always r, maximizing Sharpe ratio is equivalent to minimizing risk) (2) If the expected returns are correlated and the pairwise correlation coefficients are all p, what is the best portfolio? What happened when N +o