Given the following information regarding asset 1 and 2, answer the following questions.

E(r1)= 10%, std(r1)= 20%, E(r2)=5%, std(r2)=25%

1. under the mean-standard deviation criteria, asset 2 is dominated by asset 1(i.e asset 1 is preferred). If the asset 1 and 2 are the only available assets (correlation coefficient is not 1.0), explain why the asset 2 would not be delisted from the market. (use mean-variance plane)

2. answer the above question if the correlation coefficient between asset 1 and 2 is 1.0