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Consider the following data for the US and Australia: US: mean = 0.1355 Stdev = 0.1535 AU: mean = 0.1355 Stdev = 0.2298 Correlation of

Consider the following data for the US and Australia:

US: mean = 0.1355 Stdev = 0.1535

AU: mean = 0.1355 Stdev = 0.2298

Correlation of US-AU = 0.80 Assume the risk-free rate to be 7%.

a) Compute the weights for the minimum variance portfolio (MVP).

b) Compute the weights for the mean variance efficient (MVE) portfolio.

c) What is the slope of the Capital Allocation Line (CAL)?

Can someone help me how to calculate each one with formulas and step by step on how to solve it. Please do not use excel and just show answers. Thank you

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