Prove the efficient frontier of two-security portfolio

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Problem 1: Prove the efficient frontier of two-security portfolio is a straight line when the two securities are perfectly positively correlated. (Assume the two stocks have rA and rB rate of return respectively. The standard deviations of the two stocks are σA and σB. The proportions of the two stocks in the portfolio are wA and wB)

Reference no: EM132760188

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