= Assume there are two risky assets with the following risk and return characteristics: E(ri)= 10%; 0,= 16%; E(rz) = 20%; 02 = 28%. Construct portfolios of these two assets by taking W, = 1; 0:9; 0:8;....; 0:1; 0. Calculate expected return and standard deviation for each such portfolio. Take the following values of the correlation coefficient: P12=-1; P1,2 = -0:8; P1,2= -0:3; P1,2 = 0; P1,2 = 0:3; P1,2 = 0:8; P1,2 = 1. In one graph draw the portfolio frontier for each case. Discuss your results and comment on the magnitude of diversification. To decrease the amount of computations on this question, use the excel spreadsheet. = Assume there are two risky assets with the following risk and return characteristics: E(ri)= 10%; 0,= 16%; E(rz) = 20%; 02 = 28%. Construct portfolios of these two assets by taking W, = 1; 0:9; 0:8;....; 0:1; 0. Calculate expected return and standard deviation for each such portfolio. Take the following values of the correlation coefficient: P12=-1; P1,2 = -0:8; P1,2= -0:3; P1,2 = 0; P1,2 = 0:3; P1,2 = 0:8; P1,2 = 1. In one graph draw the portfolio frontier for each case. Discuss your results and comment on the magnitude of diversification. To decrease the amount of computations on this question, use the excel spreadsheet