Question 1: Assume you wish to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumed degrees of correlation: perfect positive, uncorrelated, and perfect negative. The following average return and risk values were calculated for these assets.

Asset	Return, r	Risk (Standard Asset Deviation)
V	6%	5%
W	10%	15%

a. If the returns of assets V and W are perfectly positively correlated (correlation coefficient = +1), describe the range of (1) return and (2) risk associated with all possible portfolio combinations.

b. If the returns of assets V and W are uncorrelated (correlation coefficient = 0), describe the approximate range of (1) return and (2) risk associated with all possible portfolio combinations.

c. If the returns of assets V and W are perfectly negatively correlated (correlation coefficient = -1), describe the range of (1) return and (2) risk associated with all possible portfolio combinations.