Question: Example: portfolio weights are x 1 = 0 . 2 5 , x 2 = 1 - x 1 . The two assets characteristics are:

Example: portfolio weights are x1=0.25,x2=1-x1. The two assets characteristics
are: E[R1]=5%,E[R2]=10%,V[R1]=10,V[R2]=15,Cov(R1,R2)=
-1. What is the variance of your portfolio?
9.0625
8.6875
7.0625
Example: portfolio weights are x1=0.25,x2=1-x1. The two assets characteristics are: E[R1]=5%,E[R2]=10%,V[R1]=10,V[R2]=15,Cov(R1,R2)=

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