E(rE) E(rB) σE σB ρEB

10 5 19 8 0.2

Portfolio Weights Expected RStd. Dev.

wE=1-wB wB
-0.2 1.2 4 9.59208
-0.1 1.1 4.5 8.62334
12
0 1 5 8
wB 10
0.0932 0.9068 5.466 7.803877 0.907743
0.1 0.9 5.5 7.805255 wE 0.092257 8

Exp. Return
0.2 0.8 6 8.070192
6
0.3 0.7 6.5 8.753171
0.4 0.6 7 9.766883 4
0.5 0.5 7.5 11.02044 2
0.6 0.4 8 12.44154
0.7 0.3 8.5 13.9792 0
6 8
0.8 0.2 9 15.59897
0.9 0.1 9.5 17.27779
1 0 10 19
1.1 -0.1 10.5 20.75481
1.2 -0.2 11 22.5346
 Chart Title
12

10

8
Exp. Return

0
6 8 10 12 14 16 18 20 22 24
Std. dev.