Question: B. The following data are given for 4 shares. If you had to choose 2 to form a portfolio, what would they be? Justify your

B. The following data are given for 4 shares. If you had to choose 2 to form a portfolio, what would they be? Justify your answer and calculate the return and risk of the portfolio that includes the 2 shares with an investment rate of 50% in each. Average monthly return(R) 6% Shares A B r A 3% Standard deviation (o) 2% 4% 3% 5% 8% 7% = Correlation coefficient A Kal B: PAB = +0,6 Correlation coefficient A kall: par = +0,9 Correlation coefficient A : = +0,8 Correlation coefficient B kall: PBT = +0,1 Correlation coefficient B : = +0,2 Correlation coefficient kal A: plA = +0,3
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