1. [20 points] Given two investible assets, asset 1 has an expected return of 10% and a standard deviation of 8%. Asset 2 has an expected return of 15% and a standard deviation of 12%. The correlation between the returns of the two assets is 0.2. (a) Draw on a - a diagram all possible combinations of the two assets. You may consider having 100%, 80%, 60%, 40%, 20% and 0% weight in asset 1 first. (b) Which portfolio combination would give the smallest variance? ) Label the efficient frontier on your diagram