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Consider two securities, one from the Bellville Stock Exchange and the other from the Brackenfell Stock Exchange (both with normally distributed returns) have same expected
Consider two securities, one from the Bellville Stock Exchange and the other from the Brackenfell Stock Exchange (both with normally distributed returns) have same expected rate of return. Suppose the standard deviations of the rates of returns are v1 = .18 and v2 = .24, and that the correlation between the two rates of returns is = .25. Then, calculate the optimal fraction of ones investment capital that should be used to purchase the security 1 from the Bellville Stock Exchange.
please help me with the financial Mathematics question
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