each stock follow normal distribution

expeceted return s.d

stock A 3% 3%

stock B 4% 3%

1.

The correlation between stock A and B returns is zero. What is the expected return on the portfolio when Gil-dong Hong uses stocks A and B to construct a portfolio such that the diversification of the portfolio is minimized? And what is the maximum loss (ie, the size of the loss at a point 2.33 times the standard deviation from the mean) that can occur at 99% when 100 million is invested in a portfolio in a way that minimizes variance?

2.

The correlation between stock A and B returns is -1. What is the expected return of the portfolio using stocks A and B to minimize the portfolio diversification? And what is the maximum possible loss (that is, the size of the loss at a point 2.33 times the standard deviation from the mean) is 99% when a portfolio is constructed in a way that minimizes variance and 100 million is invested for one year?