Chapter 9. The Case for International Diversification Asset 1 100% 80% 60% 50% 40% 205 09 Asset 2 09 20% 40% 50% 60% 80% 100% b. Use the expected return and risk calculations for all the portfolios in ple an expected return-risk graph. 3. Consider the following information on the expected return and risk of two assets E(R) = 10%. = 14% E(R) - 16%, 0,= 16% a. Calculate the expected return and risk of portfolios invested in the following po portions listed. Assume a correlation of p=0.5. Asset 100% 80% 50% 50% 10% 20% Asset 2 0% 20% 40% 50% 60% 09