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Solve the following questions based on the data contained in the table below: a. What are the investment proportions of the two stocks in the
Solve the following questions based on the data contained in the table below: a. What are the investment proportions of the two stocks in the minimum variance portfolio? (3 marks) b. Solve numerically for the proportions of A and B and for the expected return and standard deviation of the optimal risky portfolio P. (6 marks) c. Determine the formula for the CAL supported by T-bills and portfolio P (show the intercept and slope). (3 marks) d. How much will an investor with A=4 invest in the funds A and B and the T-bills? marks)
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