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1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard...

1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 33 percent, and Stock I, an international company, with an expected return of 16 percent and a standard deviation of 40 percent. The correlation between the two stocks is 0.2. What is the weight of stock D in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

2. Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 27 percent, and Stock I, an international company, with an expected return of 16 percent and a standard deviation of 44 percent. The correlation between the two stocks is -0.6. What is the weight of stock D in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago
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