You currently have $300,000. You want to invest it in the following three assets: 10-year US Treasury bond with coupon rate 3.8%, Blandy and Gourmange stocks below: (see image):

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?

Gourmange 9. 2% 38. 6% Blandy 6. 4% 25. 2% 0 . 1 1 Year Correlation between Blandy and Gourmange Standard deviation of annual return Average annual return