Assume that you use the same weighting scheme as used in Table 8.1. Now you have the following information about your two risky assets, X and Y: E(r x

) = 10%, E(r y

) = 12%,

σ2 x

=200, and σ2 y

=300. Reproduce a graph like Figure 8.2 with the three values of ρxy:

+1, –1, and 0.