Question
State of economy Probability Estimated Return (Fund A) Estimated Return (Fund B) Great 30% 10% 25% Average 30% 15% 11% Poor 40% 20% 15% If
| State of economy | Probability | Estimated Return (Fund A) | Estimated Return (Fund B) |
| Great | 30% | 10% | 25% |
| Average | 30% | 15% | 11% |
| Poor | 40% | 20% | 15% |
If you invest $2,000 in Fund A and $8,000 in Fund B
Calculate the following:
Construct the complete covariance and correlation matrices for A&B
Find the minimum variance portfolio using solver and report its variance, standard deviation and expected return
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Financial Markets And Institutions
Authors: Frederic S. Mishkin
2nd Edition
0321014650, 9780321014658
