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Suppose I have the following efficient frontier: Part a) What conclusions can you make from this? Part b) if you can leverage, where would you
Suppose I have the following efficient frontier:
Part a) What conclusions can you make from this? Part b) if you can leverage, where would you invest? Part c) If you cannot use leverage, and your client demands a 27% return annually what portfolio would you recommend and what problems may this portfolio have?
Efficient Frontier (Oct 2012 - Nov 2020) 45.0% 40.0% AMZN 36.0% 30.0% Targency Portfolio 1 CAMP AAPL 25.0% GOOG 20.0% . JPM Minimum Variance 15.0% JNJ 12.0% 13.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.096 22.0% 28.0% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% 30.0% 21.0% Standard Deviation Efficient Frontier (Oct 2012 - Nov 2020) 45.0% 40.0% AMZN 36.0% 30.0% Targency Portfolio 1 CAMP AAPL 25.0% GOOG 20.0% . JPM Minimum Variance 15.0% JNJ 12.0% 13.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.096 22.0% 28.0% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% 30.0% 21.0% Standard DeviationStep by Step Solution
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