14. Shares in Hot Tea and Cold Ice are perfectly negatively correlated. Share Expected Return (R) Standard deviation () Hot Tea 18 12 Cold Ice 12 6 a. Calculate the expected return from a portfolio consisting of 25 percent of Hot tea and 75 percent of Cold Ice. (1 mark) b. How would you allocate the fund to achieve a zero standard deviation

14. Shares in Hot Tea and Cold Ice are perfectly negatively correlated. Share Standard deviation Expected Return (R) 18 12 Hot Tea Cold Ice 12 6 a. Calculate the expected return from a portfolio consisting of 25 percent of Hot tea and 75 percent of Cold Ice. (1 mark) b. How would you allocate the fund to achieve a zero standard deviation (2 marks)