Question $5(10$ points$)$

Create different portfolios with weights $($weightS&P$,$ weightBond$)$ where weightBond

$=1-$ weightS&P$.$ Let weightS&P equal $0\%,10\%,20\%,..,100\%.$ Calculate the average

return and the standard deviation for each of the eleven portfolios. Which of the

following portfolio has the lowest risk $($as measured by the standard deviation$)?$

The portfolio with $0\%$ weight in the S&P$500.$

The portfolio with $20\%$ weight in the S&P$500.$

The portfolio with $40\%$ weight in the S&P$500.$

The portfolio with $60\%$ weight in the S&P$500.$