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Using the special case of two stocks, and the equation down below, explain in detail how you could get the graph ( next page on

Using the special case of two stocks, and the equation down below,
explain in detail how you could get the graph (next page on the righ-hand side), where the correlation is negative 1.
Show all your work (equations, and relevant explanations).
\sigma _(p)^(2)=w_(A)^(2)\sigma _(A)^(2)+w_(B)^(2)\sigma _(B)^(2)+2w_(A)w_(B)\sigma _(A,B)
The general equation for many stock portfolio
Portfolio Variance =\sum_(i=1)^N \sum_(j=1)^N w_(i)w_(j)\sigma _(i,j)
W_(i) is the weight of asset i in the portfolio
(same for j).
\sigma _(i,j) is the covariance between assets i and j.
For a two-asset portfolio, this formula is:Risk vs. return for Feasible Portfolios rp
vs.PRisk vs. return for Feasible Portfolios rp
vs.P
Case 1: AB=+1
Case 2: AB=0
Case 3: AB=-1
Actual Efficient Frontier
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