You are considering two assets with the following characteristics. E(R1) = 0:15 E(1) = 0:10 w1 = 0:5 E(R2) = 0:20 E(2) = 0:20 w2

• You are considering two assets with the following characteristics. E(R1) = 0:15 E(σ1) = 0:10 w1 = 0:5 E(R2) = 0:20 E(σ2) = 0:20 w2 = 0:5 Compute the mean and standard deviation of two portfolios if r1,2 = 0.40 and -0.60. Plot the two portfolios on a risk–return graph and briefly explain the results.