You are considering investing in Assets A and B with the following returns and standard deviations (of return):

E(r); SD

A 8%; 24%

B 4%; 28%

c) Now suppose risk-free rate (rf) is zero. Suppose Assets A and B are perfectly positively correlated. Illustrate with a diagram as to why a rational investor would or would not hold Asset B in ones portfolio. [Hint: Can provide verbal support to the graph, if necessary, in no more than three lines.] (5 marks)