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You are given the following information regarding asset returns of Asset 1 and Asset 2. VCV Inverse VCV Expected returns Asset 1 Asset 2

You are given the following information regarding asset returns of Asset 1 and Asset 2. VCV Inverse VCV Expected returns Asset 1 Asset 2 Asset 1 0.2300 Asset 2 0.1200 0.1200 0.4200 Asset 1 Asset 2 Asset 1 5.1095 -1.4599 Asset 2 -1.4599 2.7981 Asset 1 Asset 2 6% 4% The risk free rate is 2% and the market risk premium expected return is 5% with a variance of 14%. What is the variance of the minimum variance portfolio of asset 1 and asset 2?

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