Task #$1($Portfolio frontier$).$ Assume that you have two risky assets, namely a stock

index $($asset $1)$ with monthly expected return of $1\mathrm{.}5\%$ and monthly standard deviation of $10\%,$

and a corporate bond index $($asset $2)$ with monthly expected return of $0\mathrm{.}8\%$ and monthly standard

deviation of $5\%.$ There return correlation $$ equals $40\%.$

Compute the portfolio weights, expected return and standard deviation of the minimum

variance portfolio. $($Remember this is the portfolio at the left$-$most tip of the portfolio frontier,

i$.$e$.$ among all portfolios that can be formed of the two assets, it is the one with the smallest

variance.$)$

Draw a graph in standard deviation $-$ expected return space, add three points for the the

two assets and the minimum variance portfolio. Discuss how you would find all other points on

the mean$-$variance froniter and draw an approximate graph of it$.$ Which is the efficient part of

the frontier?