Question: 2. Stock As expected return and standard deviation are E[rA] = 8% and standard deviation A= 15%, while stock Bs expected return and standard deviation

2. Stock As expected return and standard deviation are E[rA] = 8% and standard deviation A= 15%, while stock Bs expected return and standard deviation are E[rB] = 12% and standard deviation B= 21%.

Finally, assume that portfolio(AB)=0. Find the standard deviations of portfolios with the following expected returns: 8%, 9%, 10%, 11%, 12%, 13%, 14% and 15%. Plot the expected returnstandard deviation pairs on a graph (with the standard deviations on the horizontal axis, and the expected returns on the vertical axis)

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