Question: 1.Using the data given below, please graph the expected return and standard deviation for 3 portfolios using the 3 different correlations 2. Indicate what area

1.Using the data given below, please graph the expected return and standard deviation for 3 portfolios using the 3 different correlations

2. Indicate what area of the graph is efficient using the correlations

3. Assume you can lend and borrow at a riskless rate of 5% and short sales are allowed. Find the location of the optimal portfolio for each portfolio considered.

4. Calculate the minimum variance for each portfolio

Security

Expected Return

Standard Deviation

A

15.5%

8.4%

B

7.25%

4.2%

Please create 3 different graphs using the following correlations: .5,0,-.9

SHOW WORK and ALL formulas used

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