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Suppose you hold a portfolio with 10 stocks. Each of these stocks has different expected return, standard deviation and correlation with the other stocks in
Suppose you hold a portfolio with 10 stocks. Each of these stocks has different expected return, standard deviation and correlation with the other stocks in the portfolio. With these stocks you could potentially form hundreds (even thousands) of different portfolios. Explain in detail how you can construct the efficient frontier from all possible portfolios you can create using these assets. Explain what the efficient frontier and what is an efficient portfolio. Feel free to use a graph in providing an answer.
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