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Two assets have expected returns and standard deviations as follows : Asset Expected return Standard deviation A 10 8 B 16 11 These assets are

Two assets have expected returns and standard deviations as follows :

Asset

Expected return

Standard deviation

A

10

8

B

16

11

These assets are perfectly negatively correlated. What is the minimum standard deviation that can be obtained by combining assets A and B in a portfolio? Prove with words or show the equations.

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