Question: 3. (40 points) Consider the optimization problem max Rp ( W1, W2) = PIw1 + p2w2 W1,W2 subject to (3) Vojwi + 02w2 + 2p120102W1W2

3. (40 points) Consider the optimization problem max Rp ( W1, W2) = PIw1 + p2w2 W1,W2 subject to (3) Vojwi + 02w2 + 2p120102W1W2 = OT W1 + w2 = 1 where we are given two securities with Expected Return...

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