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Exhibit 7A σ\sigma 2)2 - R1 σ\sigma 1)E σ\sigma 2)] -[E σ\sigma 1)2 + E

question 77

Multiple Choice

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( σ\sigma 2) 2 - r1.2 E( σ\sigma 1) E( σ\sigma 2) ] -[E( σ\sigma 1) 2 + E( σ\sigma 2) 2 - 2 r1.2E( σ\sigma 1) E( σ\sigma 2) ]
-Refer to Exhibit 7A.1. Show the minimum portfolio variance for a two stock portfolio when r1.2 = 1.

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Definitions:

Information

Data that has been processed or presented in a format that is understandable and useful to the recipient.

Interacting

The act of communicating or engaging in action with others, often leading to an exchange of information or influence.

Media

Communication channels through which news, entertainment, education, data, or promotional messages are disseminated.

Cyborgs

Beings that combine organic and biomechatronic body parts, often referred to in the context of beings with enhanced abilities due to technological integrations.

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