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In: Accounting

Consider the following probability distribution for stocks A and B: State Probability Return on Stock A...

Consider the following probability distribution for stocks A and B:

State Probability Return on Stock A Return on Stock B
1 0.10 10 % 8 %
2 0.20 13 % 7 %
3 0.20 12 % 6 %
4 0.30 14 % 9 %
5 0.20 15 % 8 %

Let G be the global minimum variance portfolio. The weights of A and B in G are ________ and ________, respectively.

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