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7. Consider the following information regarding the returns of two securities: Scenario Probability Return Ki Return K wi 0.3 0% 10% W2 0.5 -5% 5%

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7. Consider the following information regarding the returns of two securities: Scenario Probability Return Ki Return K wi 0.3 0% 10% W2 0.5 -5% 5% 15% 0% L W3 0.2 (a) What are the weights for the minimum variance portfolio?! (b) What is the expected return of the minimum variance portfolio?! (c) What is the expected return of the market portfolio if R = 2%

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