E(R 1) = 0.12
	E(R 2) = 0.17
	E( 1) = 0.05
	E( 2) = 0.08

Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.60 under the conditions given below. Do not round intermediate calculations. Round your answers to four decimal places.

1. w ₁ = 1.00

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

1. w ₁ = 0.75

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

1. w ₁ = 0.50

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

1. w ₁ = 0.30

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

1. w ₁ = 0.10

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

Choose the correct riskreturn graph for weights from parts (a) through (e) when r_i,j = -0.60; 0.00; 0.60.

The correct graph is -Select-graph Agraph Bgraph Cgraph DItem 11 .

A.
B.
C.
D.