Question: Look back at the calculation for Campbell Soup and Boeing in Section 8.1. Recalculate the expected portfolio return and standard deviation for different values of

Look back at the calculation for Campbell Soup and Boeing in Section 8.1. Recalculate the expected portfolio return and standard deviation for different values of x1 and x2, assuming the correlation coefficient p12 = 0. Plot the range of possible combinations of expected return and standard deviation as in Figure. Repeat the problem for p12 =+.5.

10 Boeing 40% in Boeing Campbell soup 100 15 20 0 Standard deviation (), %

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