Question
Let R 1 and R 2 be the returns of two securities with E(R 1 )= .03 and E(R 2 )= .08, VAR(R 1 )=.02
Let R1 and R2 be the returns of two securities with E(R1)= .03 and E(R2)= .08, VAR(R1)=.02 and VAR(R2)= .05, and COV(R1,R2) = -.01.
(a) Plot the feasible mean variance combination of return, assuming that the two securities above are the only investment vehicle available,
(b)If we want to minimize risk how much of our portfolio will we invest in security 1?
(c) Find the mean and standard deviation of portfolio that is 50% in security 1?
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Criminal Law
Authors: Jennifer Moore, John Worrall
3rd Edition
0135777623, 978-0135777626
