Portfolios on a risk-return graph

Reference no: EM13979576

You are considering two assets with the following characteristics.EðR1Þ = 0:15 Eðs1Þ = 0:10 w1 = 0:5EðR2Þ = 0:20 Eðs2Þ = 0:20 w2 = 0:5Compute the mean and standard deviation of two portfolios if r1,2 = 0.40 and -0.60, respectively. Plot the two portfolios on a risk-return graph and briefly explain the results.

Reference no: EM13979576

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