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Suppose Tex stock has a volatility of 36%,and Mex stock has a volatility of 18%.If Tex and Mex areuncorrelated, a. Construct a portfolio with positive

Suppose Tex stock has a volatility of 36%,and Mex stock has a volatility of 18%.If Tex and Mex areuncorrelated,

a. Construct a portfolio with positive weights in both stocks and that has the same volatility as MEX alone.

b. What portfolio of the two stocks has the smallest possible volatility?

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