Question
In: Finance
You have collected the following data on the returns of George Aviation (GA) and Aw Under...
You have collected the following data on the returns of George Aviation (GA) and Aw Under Bins Suction (AUB) over the last 10 years:
| Year | GA | AUB |
| 1 | 19% | 3% |
| 2 | 14% | 7% |
| 3 | 18% | -2% |
| 4 | 13% | 5% |
| 5 | 12% | 8% |
| 6 | 17% | 2% |
| 7 | 16% | -3% |
| 8 | 10% | 4% |
| 9 | 11% | 1% |
| 10 | 20% | 0% |
Given this information, find the optimal weights of a portfolio that consists of these two securities assuming a minimum acceptable return of 2%. Then, calculate the return on the optimal portfolio, its standard deviation, and its safety-first ratio.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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