The Stock Market of Country a Has an Expected Return

question 21

Essay

The stock market of country A has an expected return of 5%, and standard deviation of expected return of 8%. The stock market of country B has an expected return of 15% and standard deviation of expected return of 10%.
Is it reasonable to conclude that your portfolio is on the efficient frontier? If not, then prove your point by finding just one portfolio weighting between A and B that offers more return with less risk. If you think it is on the efficient frontier, why do you think this? No points for guessing.

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Definitions:

Brain Development

The process of growth and change in the brain's structure and function throughout a person's life, especially significant in early years.

Menopause

The cessation of ovulation and menstrual cycles and the end of a woman’s reproductive capability.

Menstruation

Menstruation is the monthly discharge of blood and mucosal tissue from the inner lining of the uterus through the vagina.

Ovulation

The release of an egg from the ovary, a key phase in the menstrual cycle that allows for reproduction.