Assume that there are no short-selling opportunities. Draw a graph of an efficient set for the above

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Assume that there are no short-selling opportunities. Draw a graph of an efficient set for the above 2 assets and the variance of the portfolio.

Expected return of the portfolio: E (R_p) = 12.1

Variance of the portfolio: Var (R_p) = 7.99

Standard deviation of the portfolio: Std (R_p) = 2.83

Cov(x,y)= -5

	x	y
E(R)	10	17
Variance	16	25
Standard deviation	4	5

Related Book For answer-question

Macroeconomics

ISBN: 978-0132991339

5th edition

Authors: Stephen d. Williamson

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Posted Date: Sep 14, 2020 03:53 AM

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Assume that there are no short-selling opportunities. Draw a graph of an efficient set for the above

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To draw the proficient set diagram we want the normal returns fluctuations and covariance of the two resources In view of the gave information we have ... View the full answer

Macroeconomics

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