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Given the following information: E(R) ABC Insurance 10% 20% HK Gas 5% 13% Exchange Fund bills 2.0% 0% The correlation between the two stocks is

Given the following information:

E(R)

ABC Insurance 10% 20%

HK Gas 5% 13%

Exchange Fund bills 2.0% 0%

The correlation between the two stocks is 0.25.

You are required to tabulate and draw the investment opportunity set of the two risky stocks. Use investment proportions for the ABC Insurance of zero to 1.0 in increments of 0.2. Show the steps of calculation clearly.

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