Question
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
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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 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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Handbook Of Financial Intermediation And Banking
Authors: Anjan V. Thakor, Arnoud Boot
1st Edition
0444515585, 978-0444515582
