Consider two securities, the first having μ1 = 1 and σ1 = 0.1, and the second having μ2 = 0.8 and σ2 = 0.12. Suppose that they are negatively correlated, with ρ = −0.8. Denote the expected return and its standard deviation as functions of π by μ(π ) and σ (π ). The pair (μ(π ), σ (π )) trace out a curve in the plane as π varies from 0 to 1. Plot this curve in R.

Consider two securities, the first having μ1 = 1 and σ1 = 0.1, and the second
having μ2 = 0.8 and σ2 = 0.12. Suppose that they are negatively correlated,
with ρ = −0.8.

Denote the expected return and its standard deviation as functions of π by
μ(π ) and σ (π ). The pair (μ(π ), σ (π )) trace out a curve in the plane as π
varies from 0 to 1. Plot this curve in R.