2. You wish to form a portfolio that yields an expected return of 9%.

(a) If you choose to invest in the two stocks only, what is the smallest standard deviation you can achieve?

(b) If instead you invest in all three assets (the two stocks and the T-bill fund), what is the smallest standard deviation you can achieve?

(c) If you have $10,000 to invest, how much do you invest in Stock A, Stock B, and the T-Bill fund to form the portfolio in part (b)?

Have Excel plot the investment opportunity set of the two stocks. Print it out, and carefully draw the investment opportunity set of all three assets on the printout. Show and label the three-asset portfolio from the above problem on your diagram.