Suppose we have N stocks whose future prices follow a simple binomial model. Specifically, it follows that the future return of stock i (R) for all i = 1, ..., N can be described as U ~{ R = di Pi 1- Pi (5) with u, (di) denoting the return on stock i in the good (bad) state such that di < u. The good (bad) state occurs with probability p; (1-P). Alternatively, the return process can be described using a binomial random variable R = uX + di(1-X) = [ui-di] Xi + di (6) with X B(1, p.) denoting the number of successes in a single experiment. In our case, this indicates whether the stock i goes up X = 1 (success) or goes down X, = 0 (failure). Task: Your main task in this question is to build the mean-variance efficient frontier for several assets. The following tasks will help you achieve so. In the following assume that we have two stocks, i.e., N=2 and the correlation between the two stock returns is given by p. Additionally, assume that p=p2 = p and that the risk-free rate is zero, i.e., Rp = 0. In addressing the following tasks, relate to the representation from Equation (6). Analytical Part 1. Your first task is to represent the mean vector () using the above parameterization. In other words, your answer should be a function u,, di, and p; for i = 1,2. 2. Your second task is to represent the covariance matrix (E) using the above parameteriza- tion. In other words, your answer should be a function u,, di, Pi, and p for i=1,2.