Question: Lockheed has a standard deviation of 11%and Intel has a standard deviation of 7%. The correlation () between Lockheed and Intelis 0. a.Complete the following

Lockheed has a standard deviation of 11%and Intel has a standard deviation of 7%. The correlation () between Lockheed and Intelis 0. a.Complete the following table and develop a graph of the investment opportunity (feasible) set of these two assets. Show your work and make a precise (to scale)graph.Note: If using Excel to graph, the scale on both axes must be the same or the graph will be incorrect.

% of PortfolioIn Intel %of Portfolio in Lockheed Expected Return on Portfolio Portfolio Standard Deviation

100 0 ? ?

75 25 ? ?

50 50 ? ?

25 75 ? ?

0 100

b.Now add to the graph the capital market line(CML).No calculations are required

c.Explain the difference between the CML and the SML (security market line).

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