7. Consider two assets with expected returns and risk given in the table below. Blau 115 Zwartz Me an Stan dard De viation .12 .10 .08 If these asset returns have a correlation coefficient of +0.5, what is the risk and return of a portfolio equally divided between the two securities? What mix of the two securities produces the portfolio having the lowest risk? What level of risk is this? 11. When the riskless rate is 0.04, assume the optimal combination of risky assets produces a portfolio with an expected rate of return equal to 0.13 and a stan dard de iation of 0.10. Along the efficient trade off line the reward-to-risk ratio with have what value? Suppose you wish to tolerate only of the risk present in the optimal risky portfolio. How must you di vide you in ves tment between the riskfree asset and the optimal risky portfolio? What expected rate of return do you achieve? TABLE 12.1 Portfolio Expected Rate of Return and Standard Deviation as a Function of the Proportion Invested in the Risky Asset Invested in the Risky Asset Proportion Invested in Riskless Asset Expected Rate of Return E(r) Standard Deviation Portfolio 0 25% 50% 75% 100% 1 00% 75% 50% 25% 0.06 0.08 0.10 0.12 0.14 0.05 0.10 0.15 0.20 13. Refer to Table 12.1 in the text. a. Perform the calculations to verify that the expected returns of each of the portfolios (F, G, H J, S) in the table (column 4) are correct. b. Do the same for the standard de viations in column 5 of the table