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If the risk-free rate is 2%, how would you invest your wealth of $1000 if you want to be mean-variance efficient and your total amount

You have the following prices for two stocks over the last 5 years : Time Period 2014 2015 2016 2017 2018 Asset 1 100 110 105


Portfolio portfolio weights portfolio statistics asset 1 asset 2 E(Rp) Var(p) SD(p) 10 1) 1.820969 25.04 5.003998 20.3 0.7


If the risk-free rate is 2%, how would you invest your wealth of $1000 if you want to be mean-variance efficient and your total amount of risk should not exceed 6%, as measured by the standard deviation?

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You have the following prices for two stocks over the last 5 years : Time Period 2014 2015 2016 2017 2018 Asset 1 100 110 105 95 115 Price Asset 2 80 75 82 90 85

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