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An investor is evaluating two shares: Premier Group Ltd and Sappi Ltd . Premium Group Ltd is a food producer and consumer products maker, while
An investor is evaluating two shares: Premier Group Ltd and Sappi Ltd Premium Group Ltd is a food producer and consumer products maker, while Sappi Ltd is a pulp and paper company. The shares of these two companies have a covariance of The expected return on Premium Group Ltd is with a standard deviation of while Sappi Ltd has an expected return of with a standard deviation of Determine the optimal weight of Premium Group Ltd in the investors twoasset portfolio by using the Factor A method.
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