Consider the expected return and standard deviation of the following two assets: Asset 1:               E[r1]=0.1             and                s1=0.2 Asset 2:               E[r2]=0.3            and                s2=0.4 (a) Draw (e.g. with Excel) the set of achievable portfolios in mean-standard deviation space for the cases: (i) r12=-1, (ii) r12=0. (b) Suppose r12=-1. Which portfolio has the minimal variance? What is the variance and expected return of that portfolio?   (c) Derive the formula for the variance of a portfolio with four assets.

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