Question: State Probability Return A Return B Poor 20.0% -4.0% -4.0% Normal 40.0% 3.0% 8.0% Good 30.0% 10.0% 8.0% Very Good 10.0% 30.0% 10.0% Suppose we

State Probability Return A Return B
Poor 20.0% -4.0% -4.0%
Normal 40.0% 3.0% 8.0%
Good 30.0% 10.0% 8.0%
Very Good 10.0% 30.0% 10.0%

Suppose we construct a portfolio with 20% of Stock A and 80% Stock B.

Question: Calculate the weight for stock A of the minimum variance portfolio

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