Question: Could you help giving me explanations on this problem ? Thank you. Fort (b), please provide figures. ' . pol; . I Suppose stock A

Could you help giving me explanations on this problem ? Thank you.

Fort (b), please provide figures.

' . pol; . I Suppose stock A has an expected return of 30% and a volatility of 60%, and stock B has an expected return of 7% and a volatility of 28%. Moreover, assume that the correlation between the two stocks is -0.5. (a) Compute the minimum variance portfolio consisting only of shares of stock A and B. What is the expected return and what is the volatility of this portfolio? (1)) Given your answer to part (a), describe all efcient portfolios which are investing in stock A and B

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