Let \(R_{1} \sim\left(\mu_{1}=4 \%, \sigma_{1}=10 \%ight)\) and \(R_{2} \sim\left(\mu_{2}=6 \%, \sigma_{2}=6 \%ight), ho\left(R_{1}, R_{2}ight)=\) \(25 \%\), where \(R_{1}, R_{2}\) are the returns of two assets.

(a) Graph the feasible set \(\left(\sigma_{P}, \mu_{P}ight)\) of all portfolios formed from the two assets.

(b) Calculate the weights \(\left(w_{1}^{*}, w_{2}^{*}ight)\) of the minimum variance portfolio (MVP) formed from the two assets.

(c) What is the standard deviation and expected value of the MVPs return?

(d) Although Asset 1 is dominated by Asset 2, depending on the correlation, it can be part of an efficient portfolio with positive weight. Identify the set of correlations where this can be the case. Hint: The efficient frontier starts at the MVP, so find MVP's with \(w_{1}^{*}=0\).