Question: The table below presents the returns on stocks ABC and XYZ for a five-year period. Year ABC XYZ 1 0.16 0.12 2 0.42 0.62 3

  1. The table below presents the returns on stocks ABC and XYZ for a five-year period.

Year

ABC

XYZ

1

0.16

0.12

2

0.42

0.62

3

-0.02

-0.23

4

-0.26

-0.62

5

0.48

0.52

b) Calculate the weight of each stock in the minimum variance portfolio, assume the expected return equals to average return for each stock.

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