Question: 1. The two-asset case Aa Aa The expected return for asset A is 7.75% with a standard deviation of 4.00%, and the expected return for

1. The two-asset case Aa Aa The expected return for asset

1. The two-asset case Aa Aa The expected return for asset A is 7.75% with a standard deviation of 4.00%, and the expected return for asset B is 7.00% with a standard deviation of 8.00% Based on your knowledge of efficient portfolios, fill in the blanks in the following table with the appropriate answers Proportion of Portfolio in Security A Proportion of Portfolio in Security B Expected Portfolio Return Standard Deviation Op (%) Case I Case II Case III WA 1.00 0.75 0.50 0.25 0.00 rp 0.00 0.25 0.50 0.75 1.00 4.0 4.0 4.6 5.6 2.9 3.7 5.7 8.0 7 56% 5.1 6.5 8.0 7.19% 7.00% 8.0 What is the efficient proportion of asset A within the portfolio for case II? O 0.00 O 0.43 O 1.00 O 0.94

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