The Stock Market of Country a Has an Expected Return

question 62

Essay

The stock market of country A has an expected return of 5%, and a standard deviation of expected return of 8%. The stock market of country B has an expected return of 15% and a 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? EITHER WAY, YOUR ANSWER SHOULD INCLUDE VERIFICATION.

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Definitions:

Reaction

A process in which substances interact to form new products, often characterized by a change in energy.

Product(s)

Items or substances that are the result of a process or activity, which can be tangible goods or intangible services.

Buffer Systems

Mixtures in the body's fluids that help to maintain a stable pH by neutralizing excess acids or bases.

Intracellular Ph

Intracellular pH is the measure of acidity or alkalinity within a cell, crucial for maintaining cellular functions and enzyme activities.