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> Question 4 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)
> Question 4 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. Round your answer to 3 decimal places. Your Answer: Incorrect The answer is -0.003.
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
