What proportion of a two-asset portfolio must be invested

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Question - Asset 1 has an expected return of 0.25 and a variance of returns 0.17, asset 2 has an expected return of 0.1 and a variance of returns 0.21. What proportion of a two-asset portfolio must be invested in asset one in order to achieve an expected portfolio return of 16%?

a. 40%

b. 70%

c. 10%

d. 30%

Reference no: EM133053299

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