Question: Consider two assets with expected returns and risks given as the following: If the asset returns have a correlation coefficient of 0.5, what is the

Consider two assets with expected returns and risks given as the

Consider two assets with expected returns and risks given as the following: If the asset returns have a correlation coefficient of 0.5, what is the risk and return of a portfolio equally divided between the two securities? What mix of two securities produces the portfolio having the lowest risk? What is the level of the risk? How your answers to above two questions would change if the correlation coefficient is 0.5

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