You Are Given the Following Means,standard Deviations,and Correlations for the Annual

question 1

Essay

You are given the following means,standard deviations,and correlations for the annual return on three stocks.The means are 0.12,0.15,and 0.20.The standard deviations are 0.20,0.30,and 0.40.The correlation between stocks 1 and 2 is 0.65,between stocks 1 and 3 is 0.75,and between stocks 2 and 3 is 0.41.You have $13,000 to invest and can invest no more than half of your money in any single stock.Determine the minimum variance portfolio that yields an expected annual return of at least 0.14.

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Definitions:

Legally Married

The state of being united to a person as a spouse in accordance with the laws and regulations of the jurisdiction.

Strong Commitment

A deep dedication or allegiance towards someone or something, highlighting a firm, ongoing intent to maintain a relationship or goal.

Sexual Intercourse

Physical sexual activity that involves the insertion of the penis into the vagina.

Average Frequency

A statistical measure referring to the common occurring rate or number of times an event happens within a specific period.