Question: Two assets have expected returns and standard deviations as follows: Asset Expected Return Standard Deviation A 10 8 . 16 11 These assets are perfectly

Two assets have expected returns and standard deviations as follows: Asset

Two assets have expected returns and standard deviations as follows: Asset Expected Return Standard Deviation A 10 8 . 16 11 These assets are perfectly negatively correlated. 3a) What is the standard deviation of an equally weighted portfolio of assets A and B? 3b) What is the minimum standard deviation that can be obtained by combining assets A and B in a portfolio? Explain in full either with equations or in words

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