Asset A offers an expected rate of return of 10% with a standard deviation of 25%. Asset B offers an expected rate of return of 5% with a standard deviation of 30%. Assume that the risk-free interest rate is zero. (a) Given that risk and return data of the two assets, would anyone choose to hold Asset B? Explain your answer graphically. (6) Show with calculations that there is NO diversification benefit resulting from forming the portfolio (C) Suppose Assets A and B are perfectly positively correlated. Draw a graph illustrates why a rational investor would or would not hold Asset B in one's portfolio. (d) Suppose Assets A and B are perfectly negatively correlated, form a 2-asset portfolio that has zero risk (i.e., standard deviation of return equals zero). Asset A offers an expected rate of return of 10% with a standard deviation of 25%. Asset B offers an expected rate of return of 5% with a standard deviation of 30%. Assume that the risk-free interest rate is zero. (a) Given that risk and return data of the two assets, would anyone choose to hold Asset B? Explain your answer graphically. (6) Show with calculations that there is NO diversification benefit resulting from forming the portfolio (C) Suppose Assets A and B are perfectly positively correlated. Draw a graph illustrates why a rational investor would or would not hold Asset B in one's portfolio. (d) Suppose Assets A and B are perfectly negatively correlated, form a 2-asset portfolio that has zero risk (i.e., standard deviation of return equals zero)