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There are only two stocks A and B traded in an economy. The correlation A,B=ABA,B between the stocks is 0.5. The standard deviation and expected

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There are only two stocks A and B traded in an economy. The correlation A,B=ABA,B between the stocks is 0.5. The standard deviation and expected return of each asset is as in the table below: 1. Suppose that wA=wB=21. What is the expected return of the portfolio? 2. Suppose that wA=wB=21. What is the standard deviation of the portfolio? 3. Find the minimum variance portfolio. 4. Suppose =1. Find the minimum variance portfolio. 5. Suppose instead that =1. Find the minimum variance portfolio. What is its variance? Explain

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