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An investor can design a risky portfolio based on two stocks, META and GOOGL. Stock META has an expected return of 18% and a
An investor can design a risky portfolio based on two stocks, META and GOOGL. Stock META has an expected return of 18% and a standard deviation of return of 20%. Stock GOOGL has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of META and GOOGL is 0.50. The optimal weight of GOOGL in the portfolio is?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
