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2. Consider two risky assets, R and R2, with expected returns of 5% and 4%, variances of 3 and 2, respec- tively. Assume that their

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2. Consider two risky assets, R and R2, with expected returns of 5% and 4%, variances of 3 and 2, respec- tively. Assume that their covariance is 1. (a) State the variance-covariance matrix for the two assets Ry and R2 and find its inverse - [4 marks] (b) Find the minimum variance portfolio, the expected return on that portfolio Hemin and the minimum variance 02 min

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