Question: Consider again the same situation with 4 assets and the following expected rates of return and variance-covariance matrix: 0.2 0.25 0.034 0.016 0.019 m= 0.16
| Consider again the same situation with 4 assets and the following expected rates of return and variance-covariance matrix: | |||||||||||||
| 0.2 | 0.25 | 0.034 | 0.016 | 0.019 | |||||||||
| m= | 0.16 | V= | 0.034 | 0.88 | 0.032 | 0.046 | |||||||
| 0.05 | 0.016 | 0.032 | 0.15 | 0.027 | |||||||||
| 0.1 | 0.019 | 0.046 | 0.027 | 0.102 | |||||||||
| Compute and plot the mean-variance efficient frontier by using the equation from the notes (plot E(Rp) against the standard deviation) | |||||||||||||
| Note: Plot an expected return range of 0% to 30%, with 1% increments (no need to go higher than 30%) | |||||||||||||
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