Suppose there are two risky assets available to an investor. Their expected returns are denoted with ER, and ER, , respectively. Their standard deviation of returns are denoted with 0, and o2, respectively. Let ER be the expected return on a portfolio comprised of the two denote the standard deviation of the return on this portfolio. a) If the returns on assets 1 and 2 are perfectly correlated, show that the slope of the efficient frontier dER,/do, is a constant. b) If the returns on assets 1 and 2 are perfectly inversely correlated, show that the slope of the efficient frontier dER,/do, is a positive constant on one part and a negative constant on the other part. c) Assume that the two asset returns are uncorrelated. What is the expected return and risk on the minimum variance portfolio using the values of ER, = 4.5%, ER, = 18.5% g, = 28.5% ando, =11.5% . Suppose there are two risky assets available to an investor. Their expected returns are denoted with ER, and ER, , respectively. Their standard deviation of returns are denoted with 0, and o2, respectively. Let ER be the expected return on a portfolio comprised of the two denote the standard deviation of the return on this portfolio. a) If the returns on assets 1 and 2 are perfectly correlated, show that the slope of the efficient frontier dER,/do, is a constant. b) If the returns on assets 1 and 2 are perfectly inversely correlated, show that the slope of the efficient frontier dER,/do, is a positive constant on one part and a negative constant on the other part. c) Assume that the two asset returns are uncorrelated. What is the expected return and risk on the minimum variance portfolio using the values of ER, = 4.5%, ER, = 18.5% g, = 28.5% ando, =11.5%