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2) You can invest in the three assets listed below Asset Mean Return Correlation with Toyota Toyota Nissan Riskless Asset 0.11 0.10 0.04 Standard Deviation
2) You can invest in the three assets listed below Asset Mean Return Correlation with Toyota Toyota Nissan Riskless Asset 0.11 0.10 0.04 Standard Deviation 0.12 0.10 Not telling 0.8 Not telling Your investment weight in Nissan is -3.0. What is the standard deviation of your position, as your desired rate of return on your portfolio goes from 20 to 60 percent? A hint: You have three variables to solve for here. That means you need three equations. If you assume a particular rate of return that gives you one equation. The first sentence paragraph gives you the second equation. You should know what the third equation is. 2) You can invest in the three assets listed below Asset Mean Return Correlation with Toyota Toyota Nissan Riskless Asset 0.11 0.10 0.04 Standard Deviation 0.12 0.10 Not telling 0.8 Not telling Your investment weight in Nissan is -3.0. What is the standard deviation of your position, as your desired rate of return on your portfolio goes from 20 to 60 percent? A hint: You have three variables to solve for here. That means you need three equations. If you assume a particular rate of return that gives you one equation. The first sentence paragraph gives you the second equation. You should know what the third equation is
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