Suppose you are wondering whether to invest in the shares of Amazon (Security 1) or Southwest (Security 2). You decide that Security 1 offers an expected return of 10.0% and Security 2 offers an expected return of 15.0%. After looking back at the past variability of the two stocks, you also decide that the standard deviation of returns is 26.6% for Security 1 and 27.9% for Security 2.

Calculate the expected portfolio return and standard deviation for different values of x₁ and x₂, assuming the correlation coefficient ₁₂ = 0. Repeat the problem for ₁₂ = +0.25. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

its with security one on the left and security 2 on the right

1/0.0

0.9/0.1

0.8/0.2

0.7/0.3

0.6/0.4

0.5/0.5

0.4/0.6

0.3/0.7

0.2/0.8

0.1/0.9

0/1.0