The Stock Market of Country a Has an Expected Return

question 80

Essay

The stock market of country A has an expected return of 8%, and standard deviation of expected return of 5%. The stock market of country B has an expected return of 16% and standard deviation of expected return of 10%.
Find the Global Minimum Variance Portfolio.

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Definitions:

Sarcasm

Employing irony to ridicule or express disdain.

Functional Fixedness

A cognitive bias that limits an individual to using an object only in the way it is traditionally used, hindering problem-solving.

Heating Vent

An opening designed to allow the passage of warm air from a heating system into a room or building.

Criterion-related Validity

The extent to which a measure is related to an outcome. Criterion-related validity is used to predict future or current performance - it correlates test results with another criterion of interest.