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Tuulll saludu uvidul Space wiICII CU wurwel uie two securities is -1 Expected Return Security 1 Security 2 10% % Standard Deviation 5% 2% 4

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Tuulll saludu uvidul Space wiICII CU wurwel uie two securities is -1 Expected Return Security 1 Security 2 10% % Standard Deviation 5% 2% 4 For the two securities shown, plot all combinations of the two securities in R, O space. Assume p = 1, -1,0. For each correlation coefficient, what is the combination that yields the minimum 0and what is that o,? Assume no short selling. In Problem 5, assume a riskless rate of 10%. What is the optimal investment? 6. (bohsan disod oro Tuulll saludu uvidul Space wiICII CU wurwel uie two securities is -1 Expected Return Security 1 Security 2 10% % Standard Deviation 5% 2% 4 For the two securities shown, plot all combinations of the two securities in R, O space. Assume p = 1, -1,0. For each correlation coefficient, what is the combination that yields the minimum 0and what is that o,? Assume no short selling. In Problem 5, assume a riskless rate of 10%. What is the optimal investment? 6. (bohsan disod oro

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