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8. Consider the following two assets: A: expected return = 0.20, risk = 0.13; B: expected return = 0.10, risk = 0.05. If their returns
8. Consider the following two assets: A: expected return = 0.20, risk = 0.13; B: expected return = 0.10, risk = 0.05. If their returns are uncorrelated, what is the op- timal mix of two assets to reach the lowest portfolio risk (in a portfolio consisting of both assets)? (5 points)
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