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Consider portfolio P with two assets A and B table [ [ , A , B , table [ [ Coefficient of ]

Consider portfolio P with two assets A and B
\table[[,A,B,\table[[Coefficient of],[correlation between C],[and D]]],[Expected Return E(R),20%,15%,-1],[\table[[Standard-Deviation],[SD(R)]],10%,5%,]]
We suppose that the own wealth of the investor is 20000
Explain why we can't choose between A and B
Compute the Ep and Standard deviation SD of portfolio P1 with 50% in A and 50% in B.
Compute the Ep and Standard deviation SD of portfolio P2 with 40% in A and 60% in B.
Compute the Ep and Standard deviation SD of portfolio P3 if the investor borrows 10000(interest rate is 12%) and invest all money in B.
Compute the Ep and Standard deviation SD of portfolio P4 if the investor borrows 10000(interest rate is 12%) and invest 12000 in A and 18000 in B.
What are the best portfolios and what are the worst portfolios between P1 P2 P3 P4
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