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
Posted: Wed Jul 06, 2022 6:44 pm
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?
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?