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5 FORMALIZE THE PROBLEM AND SOLVE WITH MATLAB. COPY AND PASTE THE COMMANDS YOU USED. Consider 3 risky assets, 1,2,3, having respectively the following expected
5FORMALIZE THE PROBLEM AND SOLVE WITH MATLAB. COPY AND PASTE THE COMMANDS YOU USED.
Consider 3 risky assets, 1,2,3, having respectively the following expected returns: 6%, 3%, 1%. The portfolio risk depending on the fraction invested in each risky asset is given by R=0.5x12-x2x3+0.9x2. The investor wants to reach a portfolio return equal at least to 5% and in the market it is not possible to borrow. Determine by using MatLab the fraction to be invested in each risky asset in order minimize the expected portfolio risk.
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