Question: (iii) Find the optimal weight for an efficient portfolio whose expected turn is 16%. re- Consider the three stocks whose information is given in

(iii) Find the optimal weight for an efficient portfolio whose expected turn is 16%. re- Consider the three stocks whose information is given in the following table. As- sume the risk-free return

(iii) Find the optimal weight for an efficient portfolio whose expected turn is 16%. re- Consider the three stocks whose information is given in the following table. As- sume the risk-free return (rf) is 5%. Stock Expected Return Standard deviation Correlation coefficient (i) 1 2 3 E(ri) 8% 12% 15% oi 10% 15% 20% (Pi,j) P1,2 = P1,3 0.0 P2,3 = -0.2

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