The expected returns and standard deviation of returns for two securities are as follows:

	Security Z	Security Y
Expected Return	15%	35%
Standard Deviation	20%	40%

The correlation between the returns is +0.25.

a) Calculate the expected return and standard deviation for the following portfolios:

i) All in Z

ii) 0.75 in Z and 0.25 in Y

iii) 0.5 in Z and 0.5 in Y

iv) 0.25 in Z and 0.75 in Y

v) All in

b) Draw the mean-standard deviation frontier.

c) Which portfolios might not be held by an investor who likes high expected return and low standard deviation?