You are given the following data on three assets

Pension Funds Insurance Mutual Funds

Expected Return 10% 14% 16%

Standard Deviation 20% 40% 60%

Correlation Between Pension Funds and Insurance is 0 .5

Between Insurance and Mutual Funds is 0.7

Assume that the correlation coefficient between Pension Funds and Mutual Funds is 0.89.

Calculate the expected return and standard deviation of the following portfolios, where W1, W2 and W3 represent the fractions invested in Pension Funds, Insurance and Mutual Funds respectively. Plot these figures on a graph.

W1, W2 W3 E[R]

50% 25% 25%

20% 40% 40%

30% 40% 30%

PLEASE HELP ME WITH THIS ASSIGNMENT. DEADLINE FOR SUBMISSION IS TOMORROW BY 9 AM GMT. THANKS