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You are considering two assets with the following characteristics: E(R1) = 0,15 E(1) = 0,10 w1 = 0,5 E(R2) = 0,20 E(2) = 0,20 w2

You are considering two assets with the following characteristics:

E(R1) = 0,15 E(1) = 0,10 w1 = 0,5

E(R2) = 0,20 E(2) = 0,20 w2 = 0,5

  1. Answer below
    1. Define correlation coefficient
    2. Define risk averse, risk neutral, gambler behaviors
    3. Define the characteristic of an investor who tries to invest with a portfolio

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