Consider the following probability distribution for stocks A and B: State Probability Return on Stock A...
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Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10% 8% 2 0.20 13% 7% 3 0.20 12% 6% 4 0.30 14% 9% 0.20 15% 8% The expected rate of return and standard deviation of the global minimum variance portfolio, G, are 8.97%; 2.03% O 10.07%; 1.05% O 8.97%; 1.05% O 10.07%; 3.01% and respectively. Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10% 8% 2 0.20 13% 7% 3 0.20 12% 6% 4 0.30 14% 9% 0.20 15% 8% The expected rate of return and standard deviation of the global minimum variance portfolio, G, are 8.97%; 2.03% O 10.07%; 1.05% O 8.97%; 1.05% O 10.07%; 3.01% and respectively.
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