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Stock A has expected return of 10%, a standard deviation of 19%, Stock B has expected return of 5%, a standard deviation of 8%. They

Stock A has expected return of 10%, a standard deviation of 19%, Stock B has expected return of 5%, a standard deviation of 8%. They have a correlation of -0.5. Following page 10 in M9 lecture notes, plot the efficient frontier formed by the two stocks. You must report the process, e.g., expected returns and risk of the portfolio for each weight set.

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image text in transcribed Investment Opportunity Set Investment Opportunitv Set Opportunity Sets: Various Correlation Coefficients 10 Spreadsheet 6.5 shows the investment opportunity set where columns A and B se out several different proportions for investments in the stock and bond funds

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