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– You are considering two assets with the following characteristics: E(R1) = 0,15 E(σ1) = 0,10...

– You are considering two assets with the following characteristics:

E(R1) = 0,15 E(σ1) = 0,10 w1 = 0,5

E(R2) = 0,20 E(σ2) = 0,20 w2 = 0,5

  1. Compute the mean and standard deviation of two portfolios if r1,2 = + 0,30 and - 0,40, respectively.
  2. Plot the two portfolios on a risk-return graph and briefly explain the results.
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