Question: . 3. Consider Mean-Variance analysis to construct the optimal portfolio. The relevant sample statistics are summarized in the table below and an investor i's utility

3. Consider Mean-Variance analysis to construct the optimal portfolio. The relevant sample statistics are summarized in the t Stock Variance Covariance Expected Return 0.07 Stock 1 0.16 -0.20 Stock 2 0.10 0.25 -0.20 Risk-free asset 0.05 0.00 Table 2:

3. Consider Mean-Variance analysis to construct the optimal portfolio. The relevant sample statistics are summarized in the table below and an investor i's utility function is given by U; = 100E(r.) A;100Var(r.). (2)

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