Calculate the expected return and standard deviation of each portfolio in the table below.

2. Draw an investment opportunity frontier (Figure 11.6 in the textbook). Among the eleven portfolios from part d., which would you NOT choose as your choice portfolio?

The portfolio with no stock and the portfolio with 10% in stock wouldnt be chosen since there other port folios which offer a higher expected return and a lower standard deviation.

Portfolio Weight for Stock Expected Return Standard Deviation 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Portfolio Weight for Stock Expected Return Standard Deviation 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0