Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumed degrees of correlation: perfectly positive, uncorrelated, and perfectly negative.

The expected returns and standard deviations calculated for each of the assets are shown in the following table.

Asset Expected return, r Risk (standard deviation), r V 8% 5% W 13 10

a. If the returns of assets V and W are perfectly positively correlated (correlation coefficient = +1), describe the range of (1) expected return and (2) risk associated with all possible portfolio combinations.

please show all work and or which excel formulas to use