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Suppose 2 stocks A and B with 20%10% risk and 30% return/15% volatility, calculate the return and risk of 10 combinations of these 2 stocks
Suppose 2 stocks A and B with 20%10% risk and 30% return/15% volatility, calculate the return and risk of 10 combinations of these 2 stocks in excel: 0%-100%, 10%-90%,
A) calculate the sharp ratio of each portfolio
B) Suppose the risk-free rate is 6%, use the goal seek formula in Excel to find the weights that give us the portfolio with the highest sharp ratio. Correlation=0.4
C) Draw on a risk/return graph the 10 portfolio combinations
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