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An investor can allocate their wealth across the two risky assets shown in the table below: The covariance of returns between these two assets is
An investor can allocate their wealth across the two risky assets shown in the table below:
The covariance of returns between these two assets is 0.004. The investor wishes to construct a portfolio that is the minimum variance combination of these two assets. Calculate the expected return of this minimum variance portfolio.
Asset Asset A Expected Return 0.12 Variance of Returns 0.0256 0.0625 Asset B 0.16Step by Step Solution
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