Question: (1 pt) The expected returns and standard deviation of returns for two securities are as follows: Security Z Security Y Expected Return 15% 28% Standard

(1 pt) The expected returns and standard deviation of returns for two securities are as follows: Security Z Security Y Expected Return 15% 28% Standard Deviation 20% 30% The correlation between the returns is + .5.

(a) Calculate the expected return and standard deviation for the following portfolios: i. all in Z ii. 0.5 in Z and 0.5 in Y iii. .35 in Z and .65 in Y iv. .25 in Z and .75 in Y v. all in Y

(b) Draw the investment opportunity set.

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