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Suppose you can form portfolios using only two stocks. Stock H and stock M, with the following characteristics: Eru) = 17%, E(TM) = 12%, PHM
Suppose you can form portfolios using only two stocks. Stock H and stock M, with the following characteristics: Eru) = 17%, E(TM) = 12%, PHM = 0.2, 0H = 30%, om = 20% Find the portfolio weight on stock H that gives you a two-stock portfolio that has a standard deviation of 25% (Make sure that you invest in an efficient portfolio)
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