(c) Discuss the following graphic, which shows the relationship between expected return and portfolio weights. The portfolio is comprised of a debt security D and an equity security E. What would the portfolio strategy be when Wo = 2 and We = -1? Expected Return oor 13% Equity Fund OTO 8% Debt Fund Ismai 0 1.0 0 w (stocks) -0.5 2.0 w (bonds) = 1 -w (stocks) 1.5 1.0 no 1.0 Figure 7.3 Portfolio expected return as a function of investment proportions