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Problem 1: (25 marks) Consider two assets K and M where their returns are given in the following Table: Probability . E. m.- a. Calculate

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Problem 1: (25 marks) Consider two assets K and M where their returns are given in the following Table: Probability ." E." m.- a. Calculate the mean and variance of each of these assets, and the covariance between them. b. Calculate the mean and variance for the following portfolios: -n Proportion invested in K Proportion invested in M c. Find the portfolio that has the minimum variance and compute its mean and standard deviation

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