Two risky assets are derived by a single flip of a coin. For asset $A$, a heads

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Two risky assets are derived by a single flip of a coin. For asset $A$, a "heads" outcome pays $\$ 4.00$, while a "tails" outcome pays $\$ 0.00$. For asset B, the corresponding payments are $\$ 3.00$ and $\$ 1.00$. The cost to invest in either asset is $\$ 1.00$. See Figure 6.15 . Find the efficient portfolio made from the two assets A and B.

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Investment Science

ISBN: 9780199740086

2nd Edition

Authors: David G. Luenberger

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