Question 1: Portfolio valuationConsider shares in two companies, JAY and KAY, as follows: Expected ReturnE(R) Standard Deviation Correlation CoefficientShare JAY 12% 18% – 0.3Share KAY 24% 32% a) Calculate the covariance between Share JAY and KAY returns.b) What is the expected return and standard deviation of returns on a portfolio comprising 35% in Share JAY and 65% in Share KAY?c) If you wanted to create a portfolio consisting only of these two shares, how much would you need to invest (weights) in each share so that your portfolio return would be equal to 15.6%? Note: do not round.d) Using the weights calculated in part c), calculate the variance and standard deviation of your portfolio.Question 2: Bond valuationJasmine Ltd is considering issuing bonds to raise funds for a new project. The following three options are being considered.Bond Coupon Rate Coupon/Compounding Frequency Yield Term in years Face ValueA 0% half-yearly 7.5% 5 $1,000B 6.5% half-yearly 7.5% 10 $1,000C 8.4% yearly 7.5% 8 $1,000a) Calculate the market price of each bond.b) Classify each bond as either selling at a premium, par or discount.c) Assume Jasmine has decided to issue only B Bonds. If Jasmine Ltd needs to raise $465,260 how many bonds would need to be issued? Question 2: Bond valuationJasmine Ltd is considering issuing bonds to raise funds for a new project. The following three options are being considered.Bond Coupon Rate Coupon/Compounding Frequency Yield Term in years Face ValueA 0% half-yearly 7.5% 5 $1,000B 6.5% half-yearly 7.5% 10 $1,000C 8.4% yearly 7.5% 8 $1,000a) Calculate the market price of each bond.b) Classify each bond as either selling at a premium, par or discount.c) Assume Jasmine has decided to issue only B Bonds. If Jasmine Ltd needs to raise $465,260 how many bonds would need to be issued?