Question 1: (30 points). You have to assets A and B. The expected return of asset A is equal to 4%, and standard deviation of asset A is 0.15. The expected return of asset B is equal to 6%, and standard deviation of asset B is 0.20. Correlation between assets A and B is equal to 0.7. 1.1. You have some portfolio P where 40% is invested in the asset A. Compute the expected return of portfolio P? 1.2. Compute the standard deviation of portfolio P? 1.3. Compute pseudo-Sharpe ratio for portfolio P? 1.4. Now, the correlation between assets A and B become -1 (negative 1). Construct risk- free portfolio? (Report weights of the new portfolio such that the portfolio variance is 0)