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Use below details to answer the questions that follow: Funds available Rs 1,000,000. Assume 0% idle cash in the portfolio. Correlation coefficient of Asset A

Use below details to answer the questions that follow: Funds available Rs 1,000,000. Assume 0% idle cash in the portfolio. Correlation coefficient of Asset A and B is 0.45 Standard deviation Asset A 15% Standard deviation Asset B 17% Standard deviation of Market 13% Expected return on Asset A 18% Expected return on Asset B 22% Correlation between Asset A and Market 0.75 Correlation between Asset B and Market 0.93 Expected return on Market 13% Market standard deviation 11% A market portfolio is defined as the one containing all the stocks in proportion to their share in total market capitalization. a. Create minimum-variance portfolio containing Asset A and Asset

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