Look back at the calculation for Heinz and Exxon in Section 8-1. Recalculate the expected portfolio return

Question:

Look back at the calculation for Heinz and Exxon in Section 8-1. Recalculate the expected portfolio return and standard deviation for different values of x1 and x2, assuming the correlation coefficient Ï12 = 0. Plot the range of possible combinations of expected return and standard deviation as in Figure 8.3. Repeat the problem for Ï12 = +.25.

Figure 8.3

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...