Ch 03: Assignment - Risk and Return: Part II Badet.nment Attempts: 150 Keep the Highest: 15/2 1. The two-asset case The expected return for asset Ais 9.00% with a standard deviation of 2.00%, and the expected return for asset B is 5.00% with a standard deviation of 5.00%. Based on your knowledge of efficient portfolios, fill in the blanks in the following table with the appropriate answers. Proportion of Portfolio in Security A WA Proportion of Portfolio in Security B n Expected Portfolio Return Standard Deviation 0(%) Case I(PAB = -0.4) TP Case Case III(PAB -0.7) II(PAB = 0.3) 2.0 0.00 9.00% 1.00 0.75 0.50 0.25 8.00% 2.5 N 0.50 3.0 0.25 0.75 6.00% 3.9 5.0 0.00 1.00 5.00% The minimum risk portfolio allocation to asset A within the portfolio for case II is Therefore, you are better off Grade It Now Save & Continue Continue without saving