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Narrative Two Given the following information about two assets: Expected Return of Asset 1 12.00% Standard...

Narrative Two


Given the following information about two assets:

Expected Return of Asset 1

12.00%
Standard Deviation of Asset 1

8.00%
Expected Return of Asset 2

16.00%
Standard Deviation of Asset 2

15.00%



1. Calculate the minimum standard deviation of a two-asset portfolio consisting of these two assets when the covariance between Asset 1's return and Asset 2's return is -0.009.

2.Calculate the standard deviation of a two-asset portfolio consisting of these two assets when w1 = 0.75 and the covariance between Asset 1's return and Asset 2's return is -0.009

3. The standard deviation of a two-asset portfolio consisting of these two assets may be zero if the covariance between Asset 1's return and Asset 2's return is ______

4. if the covariance between Asset 1's return and Asset 2's return is -0.009, the correlation coefficient between these two assets' returns is estimated to be ______.

please ANSWER THIS QUESTION AND EVERYTHING IT ASKING TO CALCULATE IN IT

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Expert Solution

jeff jeffy answered 2 years ago
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