Question: Using basic statistical properties of the variance, as well as single-variable calculus, derive the solution to the 3-instrument investment problem, where a fraction a of

Using basic statistical properties of the variance, as well as single-variable calculus, derive the solution to the 3-instrument investment problem, where a fractionaof the portfolio is invested in risky assetX, a fractionbis invested in the risk-free security, and the rest of the portfolio is invested in assetY. In other words, find the solution for the fractionsaandb, which minimize the variance of portfolio returns (e.g.Var(a*X + b*r_f+ (1-a-b)*Y))where.

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