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Portfolio Theory Problem You are given the following information. Answer the following question using this information, UNLESS SPECIFICALLY instructed otherwise. Expected Return Standard Deviation Asset
Portfolio Theory Problem You are given the following information. Answer the following question using this information, UNLESS SPECIFICALLY instructed otherwise. Expected Return Standard Deviation Asset A 15% 30% Asset B 20% 40% Risk-free Asset 5% 0% Correlation between Assets A and B = 0 Question 9 (5 points) Assume the minimum variance portfolio consists of 64% A and 36% B. (It really is.) Find the expected return and standard deviation of the minimum variance portfolio. Question 10 (5 points) In Expected Return/Standard Deviation space, graph the Investment Opportunity Set. You only need include Asset A, Asset B and the Minimum Variance/Standard Deviation portfolio in your graph, but make sure you show their expected returns and standard deviations labeled on the axes. A/
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