Suppose there are two countries stock market index, A and B. A\'s expected retur

Question

Suppose there are two countries stock market index, A and B. A's expected return is 6%, its standard deviation is 10%. B's expected return is 9%, its standard deviation is 15%. You have $4000 together. You invest $1000 in A and the rest in B. The correlation between A and B is 0.8. What is your portfolio's expected return and standard deviation? You have $4000 together. You invest $1000 in A and the rest in B. The correlation between A and B is 0. What is your portfolio's expected return and standard deviation? You have $4000 together. You invest $1000 in A and the rest in B. The correlation between A and B is -0.5. What is your portfolio's expected return and standard deviation? From the results in case 1), 2) and 3), what conclusion can you make? Please draw all the possible portfolios you can construct from A and B in case 1), 2) and 3) on one graph, and mark each case respectively.

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Suppose there are two countries stock market index, A and B. A's expected retur

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