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2. Asset 1 has an expected return of 10% with a standard deviation of 25%, and asset 2 has an expected return of 15% and

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2. Asset 1 has an expected return of 10% with a standard deviation of 25%, and asset 2 has an expected return of 15% and a standard deviation of 35%. The covariance between the returns is 0.0175 and the risk-free rate is 8%. (a) What is the optimal portfolio consisting of risky assets and risk-free asset if you want an average return of 0.10?

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