Shares in F and G are perfectly negatively correlated. a. Calculate the expected return and standard deviation

Question:

Shares in F and G are perfectly negatively correlated.

a. Calculate the expected return and standard deviation from a portfolio consisting of 50 per cent of F and 50 per cent of G.
b. How would you allocate the fund to achieve a zero standard deviation?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...