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Minimum Variance Portfolio of X and Y Optimal Risky Portfolio of X and Y Expected Return 15% 25% Standard Deviation 13% 16% Weight of Stock

Minimum Variance Portfolio of X and Y

Optimal Risky Portfolio of X and Y

Expected Return

15%

25%

Standard Deviation

13%

16%

Weight of Stock 1

60%

20

Weight of Stock 2

40%

80

Are there any similarities between the minimum variance portfolio and optimal risky portfolio of X and Y? Explain why or why not. What should investors consider when choosing one portfolio over the other?

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