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portfolio % Invested in Asset 1 % Invested in Asset 2 A 100 0 B 75 25 C 50 50 D 25 75 E 0
portfolio | % Invested in Asset 1 | % Invested in Asset 2 |
A | 100 | 0 |
B | 75 | 25 |
C | 50 | 50 |
D | 25 | 75 |
E | 0 | 0 |
Asset 1: has an expected return of 10% and a standard deviation of 20%.
Asset 2: has an expected return of 20% and a standard deviation of 50%
The correlation coefficient between the two assests is 0.0. Calculate the expected return and standard deviation for each of the following portfolios, and plot them on a graph
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