Please write clearly or use the computer to type the answer so that I can see it clearly, thank you!!!

Suppose you are building a two-asset portfolio with either stocks W and X or Stocks Y and Z.

	Stock W	Stock X	Stock Y	Stock Z
Expected Return	20%	26%	18%	22%
Standard Deviation	10%	13%	14%	15%

i)Use aid of a diagram, explain the conditions under which the optimal portfolio with stocks Y and Z dominates the optimal portfolio with stocks W and X.

ii) With the aid of an equation, explain the conditions under which variances of stock returns are unimportant in the determination of the risk of a portfolio.