Question: Question 1 (10 points) Consider two risky securities, A and B. Security A has an expected rate of return of 16% and a standard deviation

Question 1 (10 points) Consider two risky securities, A and B. Security A has an expected rate of return of 16% and a standard deviation of return of 20%. B has an expected rate of return 10% and a standard deviation of return of 30%. The correlation coefficient between the returns of these two securities is -0.5. What is the weight of security B in the minimum variance portfolio? What is the expected return of this minimum variance portfolio?

Question 1 (10 points) Consider two risky securities, A and B. Security A has an expected rate of return of 16% and a standard deviation of return of 20%. B has an expected rate of return 10% and a standard deviation of return of 30%. The correlation coefficient between the returns of these two securities is -0.5 . What is the weight of security B in the minimum variance portfolio? What is the expected return of this minimum variance portfolio

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