5 An investor can design a risky portfolio based on two stocks, A and B....
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5 An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 25%. Stock Bhas an expected return of 14% and a standard deviation of return of 30%. The correlation coefficient between the returns of A and B is 0.50. What is the optimal weight of the maximum variance stock that should be held to his portfolio 32% 3996 6196 6896
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