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5. (Singular) Suppose there are two stocks that are uncorrelated. Each of these has variance of 1 , and there are expected returns are r1
5. (Singular) Suppose there are two stocks that are uncorrelated. Each of these has variance of 1 , and there are expected returns are r1 and r2, respectively. The risk-free rate is rf. Find the portfolio of weights w1 and w2 for the Markowitz (market) portfolio. Show that for some value of rf there is no Markowitz portfolio
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
