Read the following case-lets and answer the questions Ms Meera has received a gift from her father of Rs 2,00,000 on her 25th birthday and wishes to invest in stocks. She wants to start with creating a Two-asset portfolio. She has approached you her good friend whom she trusts to provide her guidance regarding how to create a Two-asset portfolio. You being a fresh MBA graduate from premium B-school are looking forward to conduct a research on the securities to be included in the 2-Asset portfolio and give her an informed advice. From your research you identify 2 securities- namely $1 and $2 and have gathered the following data about them. Particulars S1 $2 Expected Return 15% 20% Std deviation 12% 16% Coefficient of correlation (r) between $1 and $2 = 0.15. After her giving her this basic information; Meera wants to know if she goes for following different combinations of portfolios 1. All funds are invested either only in S1 or $2 2. 75% of funds in S1 and 25% in $2 3. 25% of funds in $1 and 75% in $2 4. 50% of funds in each S1 and $2 What would be the expected return and risk associated under different portfolios? Which portfolio is best for her from point of risk and which portfolio is best from point of view of return