1. Assume the correlation between the two stocks equals exactly 1. Graph the investment opportunity set.

2. Now assume the correlation between the two stocks equals exactly 1. Graph the investment opportunity set.

Portfolio returns 0.012 0.01 0.008 0.006 0.004 0.002 0 0.01 0.02 0.03 0.04 0.05 0.06 Portfolio returns 0.012 0.01 0.008 0.006 0.004 0.002 0 0.01 0.02 0.03 0.04 0.05 0.06