The expected returns and standard deviation of returns for two securities are as follows:

The correlation between the returns is $+\mathrm{.}15.$

a$)$ Calculate the expected return and standard deviation for the following two$-$stock portfolios

$($assume all assets are invested in A or B$)$:

All in A$.$

$80\%$ in $A$

$60\%$ in A

$40\%$ in A

$20\%$ in A

All in B

b$)$ Graph the Investment Opportunity Set.

c$)$ Which portfolio $($of the choices above$)$ is the minimum variance portfolio?

d$)$ If the risk$-$free rate is $4\%,$ what is the Tangency Portfolio?

e$)$ Graph the Capital Allocation Line using the risk$-$free rate of $4\%$ and the Tangency Portfolio from

part $($d$).$