Suppose that one investment has a mean return of 7% and a standard deviation of return of 12%. Another investment has a mean return of 10% and a standard deviation of return of 16%. The correlation between the returns is 0.4. Produce a chart similar to Figure 1.2 in the textbook showing alternative risk-return combinations from the two investments. You may use excel to do this problem.

A chart like this^

W1 W2 Up Op