2 local Philippine equities have the same risk (standard deviation) and return expectations: 10 % expected return and 20 % risk in terms of standard deviation. Suppose you wish to create an equally weighted portfolio (50% in each equity) to examine the effect of correlation on standard deviation/risk.

- Calculate the expected portfolio return and risk if the correlation is 0.

- Calculate the expected portfolio return and risk if the correlation is 0.0.

- Calculate the expected portfolio return and risk if the correlation is 1.0.

- Comment on the return and risk of portfolios with different correlations