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Exhibit 7A.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The general equation for the weight of the first security to achieve the minimum variance (in a two stock portfolio) is given by:
W1 = [E( 2) 2 - r1.2 E( 1) E( 2) ] -[E( 1) 2 + E( 2) 2 - 2 r1.2E( 1) E( 2) ]
-Refer to Exhibit 7A.1. What weight of security 1 gives the minimum portfolio variance when r1.2 = .60, E( 1) = .10 and E( 2) = .16?
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A framework within sociology that outlines how an innovation or new product gains acceptance, focusing on the psychological and demographic attributes of particular groups who adopt it.
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Individuals or entities that introduce new ideas, products, or methods, often driving changes and progress in various fields.
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Individuals or businesses who use or adopt new products, technologies, or innovations before the majority of others do.
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The segment of consumers in the technology adoption lifecycle that adopts a new product just before the average person, usually after seeing evidence that it works from the "early adopters."
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