Format Painter - Mye ucence 576.000 Clipboard Font Formatting Table Styles Styles Alignment Number A C D E F G H A B Average monthly return 3.8591% 5.1007% 2.9211% Security B B Security A B Standard deviation 5.1019% 10.7265% 3.9305 Security B Assuming short selling is allowed: i. (2) For securities 1 and 2 find the composition, standard deviation, and expected return of that portfolio that has minimum risk. ii. (2) On the same graph plot the expected return and standard deviation for all possible combinations of securities 1 and 2 Hii (1) Assuming that investors prefer more to less and are risk avoiders, indicate those sections of the diagram in part ii) that are efficient. 5 Security A 7 Price Dividend B $ 8.50 9 $ 8.80 $ 20$ 9.25 21 $ 8.70 S 22 9.20 23 S 9.60 $ 24 S 9.15 25 26 27 28 29 Sheet1 + Select destination and press ENTER or choose Paste Security B Security C Price Dividend Price Dividend $ 35,00 $ 178.00 0.45 $ 37.00 $ 1.25 $ 165.00 $ 5.15 $ 32.00 $ 174.00 0.45 $ 36.00 $ 1.25 $ 182.00 $ 5.25 $39.00 $ 183.00 0.45 S 43.00 S 1.75 $ 187.00 $ 5.35 $ 41.00 $ 193.00 (Ctrl O Type here to search E RI Format Painter - Mye ucence 576.000 Clipboard Font Formatting Table Styles Styles Alignment Number A C D E F G H A B Average monthly return 3.8591% 5.1007% 2.9211% Security B B Security A B Standard deviation 5.1019% 10.7265% 3.9305 Security B Assuming short selling is allowed: i. (2) For securities 1 and 2 find the composition, standard deviation, and expected return of that portfolio that has minimum risk. ii. (2) On the same graph plot the expected return and standard deviation for all possible combinations of securities 1 and 2 Hii (1) Assuming that investors prefer more to less and are risk avoiders, indicate those sections of the diagram in part ii) that are efficient. 5 Security A 7 Price Dividend B $ 8.50 9 $ 8.80 $ 20$ 9.25 21 $ 8.70 S 22 9.20 23 S 9.60 $ 24 S 9.15 25 26 27 28 29 Sheet1 + Select destination and press ENTER or choose Paste Security B Security C Price Dividend Price Dividend $ 35,00 $ 178.00 0.45 $ 37.00 $ 1.25 $ 165.00 $ 5.15 $ 32.00 $ 174.00 0.45 $ 36.00 $ 1.25 $ 182.00 $ 5.25 $39.00 $ 183.00 0.45 S 43.00 S 1.75 $ 187.00 $ 5.35 $ 41.00 $ 193.00 (Ctrl O Type here to search E RI