Given: E(R1)  0.12 E(R2)  0.16 E(1)  0.04 E(2)  0.06 Calculate the expected returns and expected standard deviations of a two-stock portfolio having a covariance of 0.70 under the following conditions.

a. w1  1.00

b. w1  0.75

c. w1  0.50

d. w1  0.25

e. w1  0.05 Plot the results on a return-risk graph.Without calculations, draw in what the curve would look like first if the correlation coefficient had been 0.00 and then if it had been 0.70.