# Tag Info

Assume the weights of the two assets are $w$,$1-w$ respectively;the expected returns and standard deviations are denoted by $\mu$,$\sigma$ with subscripts 1,2,p(for portfolio),i.e,we have $\mu_1$,$\mu_2$,$\mu_p$,$\sigma_1$,$\sigma_2$,$\sigma_p$.The correlation coefficent is $\rho$ Then \sigma_p^2=w^2\sigma_1^2+(1-w)^2\sigma_2^2+2w(1-w)\sigma_1\sigma_2\rho ...