Stock 1 has a expected return of 12% and a standard deviation of 15%. Stock 2 has a expected return of 10% and a standar

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answerhappygod
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Stock 1 has a expected return of 12% and a standard deviation of 15%. Stock 2 has a expected return of 10% and a standar

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Stock 1 has a expected return of 12% and a standard deviation of15%. Stock 2 has a expected return of 10% and a standard deviationof 12%. Correlation between the two stocks is 0.3. What is theinvestment proportion of stock 1 in the minimum varianceportfolio?
Now assume a risk-free bond with a rate of return of 8%. Can youachieve a better rate for the same (minimum) variance, using therisk-free bond as well?
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