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Honeywell (HON) and United Technologies Inc. (UTI) are two leading aerospace defense contractors. HON has an expected return of 16% and a standard deviation of
Honeywell (HON) and United Technologies Inc. (UTI) are two leading aerospace defense contractors. HON has an expected return of 16% and a standard deviation of 52%. UTI has an expected return of 13% and a standard deviation of 48%. The correlation between the two companies is .65. Determine the weights of the minimum variance portfolio? Also, calculate the expected return and the standard deviation of the minimum variance portfolio.
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