Problem 2 You are discussing your retirement plan with Emma Li when she mentions that Maureen lO'Brien, a representative from TD Financial Services, is visiting your ofce today. You decide that you should meet with Maureen, so Emma sets 11p an appointment for you later in the day. 'When you sit down with Maureen, she discusses the various investment options available in the company's retirement plan. You mention to Maureen that you researched your new employer before you accepted your new job. Analysis of the company has led to your belief that the mmpany is growing and will achieve a grater market share in the future. You also feel you should support your employer. Given these considerations, along with the fact that you are a conservative investor, you are leaning toward investing l% of your retirement amount in the company you now work for. Assume the riskfree rate is the historical average TBill rate of 3.4%. The correlation between the TD LargeCap Stock Fund and the TD Bond Flmd is [1.15. Note that the spreadsheet graphing and \"Solver\" in Excel may assist you in answering the questions. 1. How should Maureen respond to the suggestion that you invest 100 percent of your retirement savings in the company you now work for? What about when you say that you are a conservative investor and that a 100 percent investment in the bond fund may be the best alternative. Is it? 2. Using the average returns and stande deviations for the TD LargeCap Stock Fund and the TD Bond Flmd [see the table in Problem 1], graph the opportlmity set of feasible portfolios you can form from these two risky assets. Examining the opportunity set, notice there is a portfolio that has the lowest standard deviation. What are the portfolio weights, expected return, and standard deviation of this minimimi variance portfolio? Why is the minimum variance portfolio important