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Consider two stocks, with the random rates of return being r1 and r2. The expected rates of return are r1 and r2. The variances of

Consider two stocks, with the random rates of return being r1 and r2. The expected rates of return are r1 and r2. The variances of the stocks return rates are 12 and 22 . The covariance is Cov[r1, r2] = 12. These two stocks are available to form a portfolio. Derive the weights assigned to each stock in order to achieve a portfolio with the minimum variance

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