- a) Assume the following about assets and B E[al-0.12, 004, E[r1-0.05, 0.01. Which one has lower absolute risk and which one has lower relative risk? b) Find the mean return, EI,, ] , and variance, ,, , of a portfolio consisting of 60% of your total wealth invested in asset A (W,-0.60), and 40% of your total wealth invested in asset B (WB- 0.40). The correlation between assets A and B (PA.B0.25 c) Now assume that the correlation is -0.5. Use the information about to calculate the variance of this new portfolio. Explain how the riskiness of the portfolio changes