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Edit question As an investor advisor your client has approached you with k1000000 to invest. You are considering creating a portifolio of two funds (X
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As an investor advisor your client has approached you with k1000000 to invest. You are considering creating a portifolio of two funds (X and Y). Th average return of the the funds are 15% and 11% respectively. The covariance (COV) matrix of the two funds below is given below. You are targeting a portfolio return of 12%.
| covariance | A | B |
| A | 0.04 | 0.025 |
| B | 0.025 | 0.032 |
(A). How much in kwacha will you invest in each of the funds?[10marks].(B) Compute the standard deviation of your portfolio.[10marks]Required:
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