Question: Let R1 and R2 be the returns for two securities with E(R1) = .03 and E(R2) = .08, VAR (R1) = .02, VAR(R2) = .05,

Let R1 and R2 be the returns for two securities with E(R1) = .03 and E(R2) = .08, VAR (R1) = .02, VAR(R2) = .05, and COV(R1, R2) = -.01.
(a) Plot the set of feasible mean-variance combinations of return, assuming that the two securities above are the only investment vehicles available.
(b) If we want to minimize risk, how much of our will we invest in security 1?
(c) Find the mean and standard deviation of a that is 50% in security 1.

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