Use the following information to answer questions 1 through 10: You are trying to form portfolios...

Use the following information to answer questions 1 through 10:

You are trying to form portfolios based on the following information:

State	Probability	Return A	Return B
Poor	20.0%	-4.0%	-4.0%
Normal	40.0%	3.0%	8.0%
Good	30.0%	10.0%	8.0%
Very Good	10.0%	30.0%	10.0%

You also know the risk-free rate is 5%.

Calculate the Weight for STOCK A of the Minimum Variance Portfolio (put your answer as a number value of a percentage...5 for 5%).

Solutions

Expert Solution

Weight for STOCK A of the Minimum Variance Portfolio = 50.64%

jeff jeffy answered 1 year ago

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