Question: 5.8 Using the fact that the hyperbolic boundary of the feasible set of the three assets is generated by any two portfolios: a Find the

5.8 Using the fact that the hyperbolic boundary of the feasible set of the three assets is generated by any two portfolios:

a Find the boundary portfolio that is uncorrelated with the tangency portfolio in exercise 5.2.

b What is the covariance with the tangency portfolio of all ineffi cient portfolios that have the same mean return as the portfolio found in part a?

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