Question
The correlation between the two stocks is 0.5. Expected return (%) Standard Deviation (%) Weight Microsoft 28 42 0.4 Coca-Cola 12.5 21 0.6 The standard
The correlation between the two stocks is 0.5.
Expected return (%) Standard Deviation (%) Weight
Microsoft 28 42 0.4
Coca-Cola 12.5 21 0.6
The standard deviation of rachels portfolio is 25.55%
James decides to follow her wifes suggestion. But, he would prefer a lower volatility for his investment. He decides to invest 40% of his wealth into the T-bills, and 60% in Rachels portfolio.
What is the proportion of his investments in each asset?
He would invest ________% into the T-bills, ________% into Microsoft, and _________% into Coca-Cola.
Note: please fill in a whole number for each blank.
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