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Sam Banks a high net worth client of Investments Plus wants assistance before making his investment decision.Banks needs to know if he can combine securities

Sam Banks a high net worth client of Investments Plus wants assistance before making his investment decision.Banks needs to know if he can combine securities JamPeg and MerKin in one portfolio.Given the information below what is the least risk portfolio consisting of the two securities??


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Correlation Security JamPeg MerKin E(R) 14% 12% JamPeg 0.4 0.85 6 B JamPeg MerKin 1 0.5 1 0.6 MerKin 0.5 1.1

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