Question: 1.a. The correlation between A and B is -0.07. Calculate the expected return of the minimum variance portfolio. Express your answer as a decimal with

1.a. The correlation between A and B is -0.07. Calculate the expected return of the minimum variance portfolio. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12.34%).

Asset Expected Return Standard Deviation
A 0.07 0.32
B 0.17 0.42

1.b. The correlation between A and B is +1. Calculate the expected return of the minimum variance portfolio. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12.34%).

Asset Expected Return Standard Deviation
A 0.12 0.19
B 0.15 0.26

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