Include FORMULAS

1. Calculate the portfolio expected return, portfolio variance, and portfolio standard deviation for each of the values listed for the shares of a grain farm's assets invested in corn and soybeans.

2. (15 points) Using the figures you calculated in your answer to question 1, draw a diagram showing the trade-off between risk and expected return for this farm. The diagram should have risk (as measured by the portfolio standard deviation) on the horizontal axis and expected return (as measured by the portfolio expected return) on the vertical axis.

Crop	Expected Return	Standard Deviation	Variance	Correlation Coefficient	Covariance
Corn	10	30	900	0.2	120
Soybeans	6	20	400
Share of Assets to Corn	Share of Assets to Soybeans	Portfolio Expected Return	Portfolio Variance	Portfolio Standard Deviation
0.00	1.00
0.05	0.95
0.10	0.90