Finance Assignment | Professional Writing
June 10th, 2020
Suppose we can only invest in two assets MSFT and GM. The expected return on MSFT is 18% and the expected return on GM is 15%. The volatility of MSFT is 6% and the volatility of GM is 5%.
Assume now that the correlation between MSFT and GM is exactly -1 . Find the portfolio weights in MSFT and GM that correspond to the minimum variance portfolio? (1 POINT) O A. 0.545 OB. 0.444 OC. 0.405 OD. 0.555