The following is the answer of the question: ''Given a simple world with two assets, a bond fund and a stock fund, clearly detail the steps involved in arriving at the 1) efficient frontier, and 2) market (optimal) portfolio.''

Can you please help me to rephrase the following answer with your own wording or design but retain the same meaning or even can add more detailed information for this question. Thank you so much!!! please answer asap!!~

Optimal Portfolio aims to maximize investors' need in return and risk and it possesses the highest risk and reward combination. If we consider the optimal portfolio in a graph of risk and return profile, it will become an efficient frontier.

Let take Fund X as bond fund and Fund Y as stock fund.

Steps:

1.Take the return and risk (standard deviation) value of fund X and Y.

2.Then, find the correlation between fund X and fund Y

3.Start with 0% in fund Y and 100% in fund X

4.Find the portfolio return and risk

5.Increase the % in X incrementally and find return and risk

6.Find the combination which will give you the best return for a particular level of risk and the best return with the lowest risk

7.These will become optimal portfolios and then plot those data on a graph with standard deviation on the x-axis and return on the y-axis

8.The efficient frontier will then be shown out.