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Asset 2 7.56% 8.56% Asset 1 31-Dec-2006 12.56% 31-Dec-2007 13.50% 31-Dec-2008 14.23% 31-Dec-2009 15.23% 31-Dec-2010 14.23% 31-Dec-2011 12.23% 31-Dec-2012 10.23% 31-Dec-2013 5.26% 31-Dec-2014 4.25% 31-Dec-2015

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Asset 2 7.56% 8.56% Asset 1 31-Dec-2006 12.56% 31-Dec-2007 13.50% 31-Dec-2008 14.23% 31-Dec-2009 15.23% 31-Dec-2010 14.23% 31-Dec-2011 12.23% 31-Dec-2012 10.23% 31-Dec-2013 5.26% 31-Dec-2014 4.25% 31-Dec-2015 2.23% 4.56% 2.12% 1.23% 0.26% 3.25% 4.89% 5.56% 6.45% Ch8 Q12: With the annual returns of the two assets, Fill in the blanks and graph the returns of the portfolios with portfolio return as Y-axis and portfolio risk (porxied by portfolio standard deviation) as X-axis. Average return Return STD Return Variance Return corelation Return Covariance Portfolio Portfolio standard mean deviation return Proportion of asset 1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Asset 2 7.56% 8.56% Asset 1 31-Dec-2006 12.56% 31-Dec-2007 13.50% 31-Dec-2008 14.23% 31-Dec-2009 15.23% 31-Dec-2010 14.23% 31-Dec-2011 12.23% 31-Dec-2012 10.23% 31-Dec-2013 5.26% 31-Dec-2014 4.25% 31-Dec-2015 2.23% 4.56% 2.12% 1.23% 0.26% 3.25% 4.89% 5.56% 6.45% Ch8 Q12: With the annual returns of the two assets, Fill in the blanks and graph the returns of the portfolios with portfolio return as Y-axis and portfolio risk (porxied by portfolio standard deviation) as X-axis. Average return Return STD Return Variance Return corelation Return Covariance Portfolio Portfolio standard mean deviation return Proportion of asset 1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

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