Review the mini-case in Chapter 6 of your text and respond to the following:

Andrea Corbridge is considering forming a portfolio consisting of Kalama Corp. and Adelphia Technologies. The two corporations have a correlation of -0.1789, and their expected returns and standard deviations are as follows:

Kalama Corp. Adelphia Technologies

Expected Return (%) 14.86 23.11

Standard Deviation (%) 23.36 31.89

1.Calculate the frontier for all possible investment combinations of Kalama Corp. and Adelphia Technologies (from 0% to 100%, in 1% increments). Determine the optimal risky portfolio if the risk-free rate is 3%.

Given this data what is the correct formula to use to compare all the options?