Construct two minimum variance frontiers(i) using the US. and unhedged European markets and (ii) using the US. and hedged European markets. Treat the returns in local currency. minus the average hedging cost in (e). as hedged returns. Consider only the portfolios with 10% weight increments, e. g. 100% US. then 90% US and 10% Europe. and so on. Assume that the US. risk-free rate is 3.12% per annum. Locate the \"optimal\" portfolio on each frontier. dened as the portfolio that {i} has the annualized standard deviation of return below 14.50%, and (ii) has the highest annualized Sharpe Ratio. Considering your optimality criteria. should you diversify into the European markets? If so. should you hedge currency risk? 'SWER: Diversify? (YES or NO] Hedge? (YES or NO) Perform the same analysis as in (g) for (i) the US. and unhedged Emerging markets and (ii} the US. and hedged Emerging markets. Should you diversify into the Emerging markets? If so. should you hedge currency risk? 'SWER: Diversify? (YES or NO] Hedge? (YES or NO)