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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?
Social Dominance Orientation
A personality trait which predicts social and political attitudes, emphasizing hierarchy in the relationships among groups.
Right-Wing Authoritarianism
A personality and ideological framework characterized by adherence to conventional norms, submission to authorities, and hostility towards outgroups.
Neuroticism
A personality trait characterized by emotional instability, anxiety, moodiness, irritability, and sadness.
Social Dominance Orientation
A personality trait which predicts social and political attitudes, characterized by a preference for hierarchy in social settings and dominance over lower-status groups.
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