We live in a world where there are two risky assets and that is all. Stock A has an expected return of 15% and a standard deviation of 22%. Stock B has an expected return of 10% and a standard deviation of 18%. (4 points)

i) Descibe the investment opportunity set on the mean-standard deviation graph that you have as an investor in this world if the correlation between Stock A and Stock B is equal to 1 [investment opportunity set = the line connecting the two stocks]

ii) Descibe the investment opportunity set on the mean-standard deviation graph that you have as an investor in this world if the correlation between Stock A and Stock B is equal to 0.1