Question
x ltd wishes to buy 1millon shares in each of the two companies from a choice of three that it might wish to acquire at
x ltd wishes to buy 1millon shares in each of the two companies from a choice of three that it might wish to acquire at som efuture date .the companies are in different industries .Historical five year data on the risk and returns of the three companies are shown below:average annual returen amanji 11%,Talk 20%,logo 14%,standard deviiation manji 17%,Talk 29%,Logo 21%, correlation coefficient between returns manji and Talk 0.00,Talk and Logo 0.40,Manji and Logo 0.62 .an advisor of X ltd has suggested the decision about which shares to buy shoud be based upon selecting the most efficient portfolio of two shares.
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