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Consider the data for stock A and Stock B below. A portfolio composed of 90% of Stock A and 10% Stock B stock has expected
Consider the data for stock A and Stock B below. A portfolio composed of 90% of Stock A and 10% Stock B stock has expected return of 19.1% and standard deviation of 20.78%. Find another portfolio with the same standard deviation and a higher return. (You can do this by trial and error, but you can also use Solver using EXCEL)
1 2 Expected return 3 Variance 4 Sigma 5 Covariance of returns B Stock A Stock B 14.25% 62.72% 6.38% 14.43% 25.25% 37.99% -5.52%Step by Step Solution
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