Security 1 Expected Return .05 15 Standard Deviation .20 .40 2 1) Given the above information, assume that pis equal to one. Fill-in the table: P Weight: Security 1 Weight: Security 2 E[ro] op 1 1 1 2/3 1 1/3 1 0 Draw by hand, the relation between E[ro] and op in your own pieces of 8.5 x 11 inch copier paper. Op 2) Given the above information, assume that pis equal to minus one. Fill-in the table: P Weight: Security 1 Weight: Security 2 E[re] 1 2/3 1/3 0 Draw by hand, the relation between E[ro] and opin a separate diagram on your copier paper. -1 -1 -1 -1 3) Please explain in at least three complete sentences (subject, verb, object), what you see. In your explanation, include a comment in the potential for reducing the risk of the portfolio to zero. Please note that this grades for this quiz will be assigned on a competitive basis, that is, the class participant with the best explanation will receive the highest grade. The work submitted by the class participants will then be graded lower than the one with the best explanation