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Assume the following two stocks P and Q Stock Expected return % St. Deviation % Correlation P 12 16 0.2 Q 18 25 construct the
Assume the following two stocks P and Q
| Stock | Expected return % | St. Deviation % | Correlation |
| P | 12 | 16 | 0.2 |
| Q | 18 | 25 |
- construct the efficient frontier of the two stocks.
- what weight combinations give the minimum variance portfolio of the two stocks? Calculate the expected return and standard deviation of the minimum variance portfolio.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
