Question
Consider the following collected rate of returns for two companies. If you are planning to create a portfolio of only these two stocks, what is
Consider the following collected rate of returns for two companies. If you are planning to create a portfolio of only these two stocks, what is the proportions of your investment (w1 and w2) in each stock such that the coefficient of variation is minimum? What is the resulting rate of return of the portfolio, what is the standard deviation of the portfolio? Hint, sketch the coefficient of variation for every value of w1 (from 0 to 1, with increments of 0.05). Use excel for your sketch.
BioLab % | MedicAid % |
19 | 9 |
16 | 7 |
10 | 9 |
14 | 9 |
18 | 5 |
14 | 6 |
18 | 6 |
12 | 6 |
16 | 9 |
11 | 5 |
17 | 7 |
19 | 8 |
13 | 9 |
14 | 10 |
15 | 8 |
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