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You are living in world where CAPM is true, and you are considering investing in assets A and B and PA,B = 0 You find that weights of minimum variance portfolio are: WA = 0.5 Which asset WB = 0.5 And BA > 0 BB > 0 market = 1 PA,market portfolio > PB,market portfolio has larger expected return A or B? You are living in world where CAPM is true, and you are considering investing in assets A and B and PA,B = 0 You find that weights of minimum variance portfolio are: WA = 0.5 Which asset WB = 0.5 And BA > 0 BB > 0 market = 1 PA,market portfolio > PB,market portfolio has larger expected return A or B?
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Given We are in a world where CAPM holds We are considering assets A and B The correlation b... View the full answer
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