Use the following information to calculate the expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Inc., and 50 percent invested in Down Co.:

	3 Doors, Inc.		Down Co.
Expected return, E(R)	15%		8%
Standard deviation,	40%		30%
Correlation		0.2

What is the standard deviation if the correlation is +1? 0? 1? As the correlation declines from +1 to 1 here, what do you see happening to portfolio volatility? Why?