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You have $5,000 available for investment in two securities A and B and a one-year investment horizon. Security A has an expected return of 8%
You have $5,000 available for investment in two securities A and B and a one-year investment horizon. Security A has an expected return of 8% and a standard deviation of 9% while security B has an expected return of 3% and a standard deviation of 16%. If the returns on these securities are perfectly negatively correlated, calculate the expected return of the minimum variance portfolio. Show all calculations
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