1.Take a horizontal approach to set up a Markowitz optimization model with the objective and the constraints based on a universe of 40 Canadian financial stocks. Short selling is allowed. Show your equations then discuss the meaning of each of your constraints. Hint; If you dont know how to type equations, you can start with copying the model from the lecture PPT. 2.) Describe as to what is possible in terms of risk & return when you hold two stocks in a portfolio that are perfectly negatively correlated. Assume any arbitrary weighting and s of the stocks you like. 3.) What would you expect will happen to the risk of a two-stock portfolio if one of the stocks you add has a strong positive correlation with the other? What if they were stocks with a strong negative correlation? (Note: Strong, but not perfect*)