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Suppose that two risky assets with returns R1 and R2 have respective mean returns of 6% and 5% and variance-covariance matrix a. Assuming that short
Suppose that two risky assets with returns R1 and R2 have respective mean returns of 6% and 5%
and variance-covariance matrix
a. Assuming that short sales are allowed, find the combination of the two assets, with minimum variance.
b. Find the mean and variance for your combination.
c. Find an equation of the efficient portfolio frontier. Sketch it and label the starting point
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