Question
MSFT has an expected return E(x) of 0.15 and a standard deviation sigma of 0.28 WMT has an expected return E(x) of 0.21 and a
MSFT has an expected return E(x) of 0.15 and a standard deviation sigma of 0.28
WMT has an expected return E(x) of 0.21 and a standard deviation sigma of 0.16
The correlation between MSFT and WMT is 0.49
The risk-free rate is 0.02.
Compute the weight of MSFT that forms the optimal risky portfolio.
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
