1. Answered already, link to answer included. Using these expected returns, and weights which vary from 0 to 100% in 5% increments, construct and graph an efficient frontier from the following sets of securities. Given the computed expected returns, standard deviations, weights and covariances, calculate the expected return and risk of each of the constructed portfolios (i.e. 20 for each of parts a, b and c). Please plot out in one graph, or show in onesingle table: (20marks)a.Two stocks from the 'recovered well'categoryb.Two stocks from the 'recovered poorly' categoryc.One stock from each of the 'recovered well' and 'recovered poorly' category (This question has been answered here https://docs.google.com/spreadsheets/d/1c-GV968FbTM_o2b2qMxaM3Wksn10djTAdiZlo5kDoqg/edit#gid=673858783. Only including as the next question is based off this answer)

1. Which point across the three portfolios calculated in Q1 (ie find one point for a, b and c) generates the best risk/reward tradeoff? How about the lowest total variance? Why do you think this is the case? (Hint: Think about the variance and covariance of the two assets). (10marks)