Problem 1 Asset A B

Expected Return Variance Standard Deviation 2 81 9 Asset 10 20 Problem 1 12.0 10.0 0.50 0.50 Correlation = 0.00 Standard deviation 16.00 14.00 0.4 0.8 Variance Standard Deviation Expected Value StatMhrd devin 1) When correlation between the assets is perfectly positive the set of possible investments is a 2) When correlation between the assets is perfectly negative the set of possible investments is a 3) When correlation between the assets is zero the set of possible investments is a 4) When correlation between the assets is .5 the set of possible investments is a 5) When the amount invested in asset A is 100% the risk of the portfolio is 6) Decreasing the amount invested in asset A more often 7) When correlation between the assets is -1 what is the best amount to invest in asset B? 8) When correlation between the assets is 1 what is the best amount to invest in asset B?