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How much weight would put into A to maximize your utility

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Question - Consider two investment A and B. The expected return of A and B are 5% and 10% respectively. The standard deviation of A's return and B's return are 12% and 15%. The correlation coefficient between A's and B's retun is 0.25. You plan to invest in a portfolio of A and B. Suppose according your utility function, you want to maximize E[Rp ]-2*Var(Rp). How much weight would you put into A to maximize your utility?

Reference no: EM132777883

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