Asset one has an expected return of 0 25 and variance of returns 0 17 asset two has an expected return 0 1 and variance of returns 0 21 What proportion of a two asset portfolio must be invested in asset one in order to achieve an expected portfolio return of 16 a 40 b 70 C 10 d 30

Question

Asset one has an expected return of 0 25 and variance of returns 0 17  asset two has an expected return 0 1 and variance of returns 0 21  What proportion of a two asset portfolio must be invested in asset one in order to achieve an expected portfolio return of 16   a  40  b  70  C  10  d  30

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Question

Asset one has an expected return of 0.25 and variance of returns 0.17; asset two has an expected return 0.1 and variance of returns 0.21.

Asset one has an expected return of 0.25 and variance of returns 0.17; asset two has an expected return 0.1 and variance of returns 0.21. What proportion of a two-asset portfolio must be invested in asset one in order to achieve an expected portfolio return of 16%? a. 40% b. 70% C. 10% d. 30%

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