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Q.2. Consider the following data for the US and Australia: Correlation of US-AU =0.80 Assume the risk-free rate to be 7%. a) Compute the weights

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Q.2. Consider the following data for the US and Australia: Correlation of US-AU =0.80 Assume the risk-free rate to be 7%. a) Compute the weights for the minimum variance portfolio (MVP). b) Compute the weights for the mean variance efficient (MVE) portfolio. c) What is the slope of the Capital Allocation Line (CAL)

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