Assume That You Are Given the Following Means,standard Deviations,and Correlations

question 7

Essay

Assume that you are given the following means,standard deviations,and correlations for the annual return on three stocks.
The correlation between stocks 1 and 2 is 0.62,between stocks 1 and 3 is 0.72,and between stocks 2 and 3 is 0.39.You have $12,000 to invest and can invest no more than 55% of your money in any single stock.Determine the minimum variance portfolio that yields an expected annual return of at least 0.15

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Definitions:

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay off creditors, after which the company ceases to exist.

Jointly And Severally

A legal term indicating that parties in an obligation or liability are responsible both together as a group and individually.

Contract Obligations

Duties imposed by a contract that parties must perform; failure to do so can result in legal action.

Partnership By Estoppel

A legal principle that occurs when a person who is not technically a partner in a business behaves like a partner or allows others to believe they are a partner, and as a result, may be held liable as a partner.