London School of Business & Finance Stoc Bon Commoditi ks ds es Expected return E(R) 13% 3% Variance % 60% 140% 148 Standard deviation % 77% 118% ,2 ,4 Correlation between stocks and bonds 0 Correlation between stocks and commodities 0 Correlation between bonds and commodities 0,7 Given the information above, you are required to produce a report that consists of the following: a) Calculate all expected returns and standard deviations of all portfolio combinations. Use 10% as the smallest unit of the combination, so for example the rst combination will be Stock 100%, Bonds 0%, and Commodities 0%, the second combination will be Stock 90%, Bonds 10%, and Commodities 0%, and so on. (5 marks) b) Plot the efcient frontier for all combinations