A portfolio analyst has been asked to allocate investment funds among three different stocks. The relevant...
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A portfolio analyst has been asked to allocate investment funds among three different stocks. The relevant data for the stocks is shown in the following table. If the goal is to minimize risk while maintaining a return of at least 18%, find the proper allocation of the funds to each stock. Stock A B с Return Risk (Standard Deviation to S) (R) 25% 21% 19% 168 8% 148 Pair of Stocks. A to B A to C B to C What proportion of the portfolio should be allocated to stock C? Joint Risk (Covariance) 0.05 0.075 -0.05 A portfolio analyst has been asked to allocate investment funds among three different stocks. The relevant data for the stocks is shown in the following table. If the goal is to minimize risk while maintaining a return of at least 18%, find the proper allocation of the funds to each stock. Stock A B с Return Risk (Standard Deviation to S) (R) 25% 21% 19% 168 8% 148 Pair of Stocks. A to B A to C B to C What proportion of the portfolio should be allocated to stock C? Joint Risk (Covariance) 0.05 0.075 -0.05
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