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Ahmed Fadhili has decided to invest 1 million dollars by purchasing shares of two companies namely;...

Ahmed Fadhili has decided to invest 1 million dollars by purchasing shares of two companies namely; ABC Ltd and XYZ Ltd. The projections of returns from the shares of the two companies along with their probabilities are as follows

Probability.      Returns(ABC).       Returns(XYZ)
0.20                     12%.                          16%
0.25.                    14%.                          10%
0.25.                     -7%.                           28%
0.30.                     28%.                           -2%

Required
The proportion of each of the above shares required to formulate the MINIMUM RISK PORTFOLIO

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jeff jeffy answered 2 years ago
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