Question
In a market with three stocks, the portfolios P1 = (0.6, 0.3, 0.1) and P2 = (- 0.2, 0.5, 0.7) lie on the Minimum Variance
In a market with three stocks, the portfolios P1 = (0.6, 0.3, 0.1) and P2 = (- 0.2, 0.5, 0.7) lie on the Minimum Variance Set. The portfolios have returns 12% and 4% respectively.
a) Does the portfolio P = (0.1, 0.4, 0.5) lie on the Minimum variance set? Explain.
b) Does Stock 1 lie on the Minimum variance set ?
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
