Q. No. 3: You are considering two assets with the following characteristics

Stock	Return	Standard Deviation
1	0.10	0.10
2	0.20	0.25

Correlation coefficient (1,2r_1,2) between two stocks is -0.5

Required:

What is the risk and return of portfolio? Draw risk and return of securities and portfolio on the graph and mark Markowitz efficient portfolio frontier.