1. The two-asset case Aa Aa The expected return for asset A is 5.25% with a standard deviation of 7.00%, and the expected return for asset B is 7.50% with a standard deviation of 7.00%. Based on your knowledge of efficient portfolios, fill in the blanks in the following table with the appropriate answers. Standard Deviation Proportion of Portfolio in Security A Proportion of Portfolio in Security B Expected Portfolio Op (%) Return Case I Case III Case II (PAB = 0.4) WA WB (PAB = -0.5) (PAB = 0.8) 1.00 0.00 5.25% 7.0 7.0 0.75 0.25 5.81% 4.6 6.7 0.50 0.50 3.5 5.9 6.6 0.25 0.75 6.94% 4.6 6.2 0.00 1.00 7.50% 7.0 7.0 7.0 The minimum risk portfolio allocation to asset A within the portfolio for case II is off Therefore, you are better