1. Given the mean returns, standard deviations of returns, and correlation coefficient of two risky assets X & Y as follows :

Form portfolios from assets X and Y with weightings of X from 0% to 100% (10% increment). Find the portfolio returns and portfolio standard deviation. Plot a graph to show the relationship between portfolio standard deviation and portfolio return and give your comment.

Repeat the calculations if the correlation coefficient between assets A & B is -1. What is your conclusion from this question ?

2. Given the mean returns, standard deviations of returns, and correlation coefficient of two risky assets X & Y as follows: 1. Mean return Standard deviation Correlation coefficient Asset X 0.1952 0.265 Asset Ye 0.127 0.304 0.68 Form portfolios from assets X and Y with weightings of X from 0% to 100% (10% increment). Find the portfolio returns and portfolio standard deviation. Plot a graph to show the relationship between portfolio Standard deviation and portfolio return and give your comment- Repeat the calculations if the correlation coefficient between assets A & B is -1. What is your conclusion from this