5. (15%) Graph the function: y = √1 - x^22x + 1. (Find where the curve is increasing and where it is decreasing. Find the local extreme points. Find the points of inflection, if any occur, and determine the concavity of the curve. Identify any asymptotes.)

I. (10%) A stock portfolio is composed of two stocks: \( A_{1} \) and \( B_{1} \). Another stock portfolio also has two investments: stocks \( A_{2} \) and \( B_{2} \). Suppose the mean prices \( (\mu) \) and the standard deviations \( (\sigma) \) of \( A_{1} \) and \( A_{2} \) are equal, and the mean price and standard deviation of \( B_{1} \) are equal to those of \( B_{2} \) (i.e., \( \mu_{A_1} = \mu_{A_2}, \mu_{B_1} = \mu_{B_2}, \sigma_{A_1} = \sigma_{A_2}, \sigma_{B_1} = \sigma_{B_2} \)). Suppose each stock comprises 50% of the portfolio. However, the correlation between stocks is higher in the first portfolio (i.e., \( \rho_1 > \rho_2 \)). Explain the difference in expected returns and risks between the two portfolios.

5. (15%) Graph the function: \( y = \frac{\sqrt{1 - x^2}}{2x + 1} \). (Find where the curve is increasing and where it is decreasing. Find the local extreme points. Find the points of inflection, if any occur, and determine the concavity of the curve. Identify any asymptotes.)

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