An investor wants to invest a fraction o of his budget in asset 1 which has expected return ri and standard deviation of returns oj and the remainder 1-a is asset 2 which has expected return r2 and standard deviation of returns 02. The correlation between the two assets' returns is p. (a) Find the expected return and variance of the investor's portfolio. (b) How should a be selected if the investor wants to minimise risk? (c) Derive the locus of risk-return combinations of the portfolio as a varies between 0 and 1 and illustrate your results graphically