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Question 1: Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 15% and a standard deviation
Question 1:
Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 15% and a standard deviation of 27%. B has an expected rate of return of 7% and a standard deviation of 13%. What are the weights of A and B in the minimum variance portfolioWhat's the return for this minimum variance portfolio? (5 Marks)
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