One stock market consists of two risky assets i = 1,2 with the following characteristics: The expected returns are: U1 E[fi] = 10% and uz = E[f2] = 15% The individual variances are: 012 20% and oza 30% 2 = = Questions: 1. Assume a correlation of O, compute expected return and standard deviation of portfolios that have investments in stock 1 for: 10%, 20%, 30%, 40%, 50%, 60%, 70%, 80%, 90% of wealth, and the rest in stock 2. 2. Repeat calculations at point 1, but assume correlation equal to 1. 3. Find the minimum standard deviation portfolio in each of the last 2 sets. 4. What is the diversification effect