7 = w, x7, + WxXFX Op = [w} xo} + w xo + 2 x P)x Xw; X Wx x0, x ox]0.5 1. Suppose stocks and have the following characteristics: Expected return 15 Standard deviation 20 14 11 Suppose also that J and K are perfectly negatively correlated pr. 1). a) Plot a combination line on the sigma-expected return plane) for stocks J and K that contains all of the portfolios made of the two stocks. Label the axes, show all of the key points on the plot b) What is the composition of minimum variance portfolio composed of Jand K? What is its expected rate of return