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what is the minimum-risk (standard deviation) portfolio of AT&T and Microsoft if the correlation between the...

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Finance

what is the minimum-risk (standard deviation) portfolio ofAT&T and Microsoft if the correlation between the two stocks is0? 0.5? 1? -1? what do you notice about the change in theallocations between AT&T and Microsoft as the correlationcoefficient moves from -1 to 0? to 0.5? to +1? why might this be?what is the standard deviation of each these minimum-riskportfolios?

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So since the portfolio standard deviation can be calculated as Standard deviation root over of weight of ATT2 VARIANCE OF ATT WEIGHT OF MICROSOFT2 VARIANCE OF MICROSOFT 2 W1W2 COVARIANCE OF ATT AND MICROSOFT When the correlation between the two stocks is 1 standard deviation root over weight of ATT2 VARIANCE OF ATT WEIGHT OF MICROSOFT2 VARIANCE OF    See Answer
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what is the minimum-risk (standard deviation) portfolio ofAT&T and Microsoft if the correlation between the two stocks is0? 0.5? 1? -1? what do you notice about the change in theallocations between AT&T and Microsoft as the correlationcoefficient moves from -1 to 0? to 0.5? to +1? why might this be?what is the standard deviation of each these minimum-riskportfolios?

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