The table below lists the expected return and the standard deviation of returns on five securities: Security Expected Return (Ei) SD(Return) (si) 1 8.1% 22.5% 2 13.5% 37.8% 3 22.5% 54% 4 31.5% 63% 5 36% 81% The correlation matrix, [ij], or [CORR(Ri, Rj)], for various values of i and j as follows: 1 2 3 4 5 1 1 0.225 0.36 0.09 0.36 2 0.225 1 0.405 0.45 0.135 3 0.36 0.405 1 0.27 0.675 4 0.09 0.45 0.27 1 0.63 5 0.36 0.135 0.675 0.63 1 Thus, the matrix above says, for instance, that 13, the correlation between returns on Security1 and those on Security3, is 0.36. Compute the variance-covariance matrix, [ij], COV(Ri, Rj), for various values of i and j and use Solver add-in in MS Excel to choose xi and xj so as to minimize p = SQRT(xixjij) subject to constraints (a) that xi = 1 and, (b) that Ep = xiEi = a given value, to start with, say, 5%. Note in a separate table values of Ep and, the minimized portfolio standard deviation, p. Now, compute p by changing the value of Ep from 5% to 50% in steps of 5%. Plot these points in Excel using an x-y scatter graph to generate the minimum variance frontier