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suppose stock y has an expected return of 20% and a standard deviation of return of 20% and the stock z has an expected return
suppose stock y has an expected return of 20% and a standard deviation of return of 20% and the stock z has an expected return of 14% and a standard deviation of return of 4%. the correlation between the returns of y and z is 0.30. the risk-free rate of return is 6%. If you wanted to create the optimal portfolio of stocks y and z, then what proportion of the portfolio should be invested in stock y?
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