F$)$ Consider the following probability distribution for stock Soci$$t$$ Cr$$me Br$$l$$e $($SCB$)$

and Compagnie Mousse au Chocolat $($CMC$)$:

Calculate the expected return of stocks SCB and CMC$.$

Calculate the variance and standard deviation of stocks SCB and CMC$.$

Calculate the covariance and correlation of stocks SCB and CMC$.$

Calculate the expected return and standard deviation for the following

portfolios:

$($a$)$ All in SCB

$($b$)20\%$ in $CMC$ and $80\%$ in SCB$.$

$($c$)40\%$ in $CMC$ and $60\%$ in SCB$.$

$($d$)60\%$ in $CMC$ and $40\%$ in SCB$.$

$($e$)80\%$ in $CMC$ and $20\%$ in SCB$.$

$($f$)$ All in CMC$.$

Go as far as you can to find the numerical value of the portfolio weight that

achieves the minimum possible standard deviation.

Draw the investment opportunity set, and show the efficient frontier.

Suppose that the correlation between SCB and CMC were equal to $-1,$ but their

expected returns and standard deviations stay the same. What portfolio weights

should you choose in order to eliminate all the risk in your portfolio?