M > B D E F G H Question 23 2 3 Suppose the Nike and Starbucks stocks (and the risk-free rate) have the following statistics. 4 5 E[r] 28% 0.25 6 E[rstarbucks 21% 0 0.2 8 18% Onke 12% starbucks 4% Preke,strocks 7 Tisk-free Nike Expected return 0.3 04 9 0.15 How much 10 weighton Starbucks? 11 Starbucks 0.1 12 13 0.05 14 O Risk free 15 16 0 01 02 17 Standard deviation 18 19 20 How much does their Global Minimum Variance Portfolio (GMVP) allocate the weight to Starbucks? 21 22 A 0.48 23 B 0.56 24 C 0.64 25 D 0.72 26 + 27 28 Hint: 29 30 31 32 Assignment 1 Question 13 If Nis Nike and Sis Starbucks, then og - ONOPNS Ws o+oj - 20 PNS