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Year Blandy Gourmange Average annual return 6.4%% 9.2% Standard deviation of annual return 25.2% 38.6% Correlation between Blandy and Gourmange 0.11 You currently have $300,000.
Year | Blandy | Gourmange |
Average annual return | 6.4%% | 9.2% |
Standard deviation of annual return | 25.2% | 38.6% |
Correlation between Blandy and Gourmange | 0.11 | |
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You currently have $300,000. You want to invest it in the following three assets: 10-year US Treasury bond with coupon raate 3.8%, Blandy and Gourmange stocks below: Your goal is to have the expected return of 6.8% with a minimum portfolio risk. How much money should you allocate to these three assets?
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