Econ 331 Financial Economics Spring 2017 Assignment 1 Due date: Monday, September 4.00 pm in 40. Question 1 Suppose you can invest your money in two...

2. Recall that wA denotes the portfolio weight of asset A (proportion of funds invested in A) and wB

1. denotes the portfolio weight of asset B, with wA  wB  1 . The coefficient  , 1    1 measures the correlation between the returns of the assets A and B.