b. Assume that the variance for each asset return is land that the correlation for every pair of asset returns Pij = 0.4. Using the results you obtained in (a) above, derive the standard deviation of the portfolio detailing and carefully explaining your steps. Derive the minimum number of assets necessary to obtain a portfolio the risk of which is smaller than 50% of the variance of an individual asset, detailing and carefully explaining your steps. [7 marks] b. Assume that the variance for each asset return is land that the correlation for every pair of asset returns Pij = 0.4. Using the results you obtained in (a) above, derive the standard deviation of the portfolio detailing and carefully explaining your steps. Derive the minimum number of assets necessary to obtain a portfolio the risk of which is smaller than 50% of the variance of an individual asset, detailing and carefully explaining your steps. [7 marks]