Question: C. Problem -C-: (12 marks) You are looking at two risky assets, the expected returns, standard deviations, and correlation between the two assets are given

C. Problem -C-: (12 marks) You are looking at two risky assets, the expected returns, standard deviations, and correlation between the two assets are given below: E(RA) 7%, Standard deviation = 12% = E(RB) 12%, Standard deviation = 18% Correlation between the two assets is 1.0 1. Which asset has more risk? 2. If you put 50% of your wealth in asset A and the other 50% in asset B, what is the expected return and the standard deviation of your portfolio

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