An investor can design a risky portfolio based on two stocks, META and GOOGL. Stock META...

 

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An investor can design a risky portfolio based on two stocks, META and GOOGL. Stock META has an expected return of 18% and a standard deviation of return of 20%. Stock GOOGL has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of META and GOOGL is 0.50. The optimal weight of GOOGL in the portfolio is? An investor can design a risky portfolio based on two stocks, META and GOOGL. Stock META has an expected return of 18% and a standard deviation of return of 20%. Stock GOOGL has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of META and GOOGL is 0.50. The optimal weight of GOOGL in the portfolio is?

Answer rating: 100% (QA)

To find the optimal weight of GOOGL in the portfolio we can use the formula for the optimal portfoli... View the full answer