Question: There are two assets. Both assets have the standard deviation of 10%. You hold 50% of your portfolio in asset 1 and 50% of portfolio

There are two assets. Both assets have the standard deviation of 10%. You hold 50% of your portfolio in asset 1 and 50% of portfolio in asset 2. The standard deviation of your portfolio is 0.

What is the correlation between returns on assets 1 and 2?

There are two assets:
Asset 1: Expected return 7.5%, standard deviation 9%
Asset 2: Expected return 11%, standard deviation 12%.
You are not sure about the correlation between 2 assets. You hold 30% of your portfolio in asset 1 and 70% in asset 2.

What is the highest possible variance of your portfolio?

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