Question: Security 1: E(R1) = 8% and 1 = 20%. Security 2: E(R2) = 12% and 2 = 10% with = 0.3. Draw the investment opportunity

  1. Security 1: E(R1) = 8% and 1 = 20%. Security 2: E(R2) = 12% and 2 = 10% with = 0.3. Draw the investment opportunity set and highlight the efficient frontier.

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