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QUESTION
Year Blandy Gourmange Average annual return 6.4%% 9.2% Standard deviation of annual return 25.2% 38.6% Correlation between Blandy and Gourmange 0.11...
YearBlandyGourmangeAverage annual return6.4%%9.2%Standard deviation of annual return25.2%38.6%Correlation between Blandy and Gourmange0.11You currently have $300,000. You want to invest it in the following three assets: 10-year US Treasury bond with coupon raate 3.8%, Blandy and Gourmange stocks below:Your goal is to have the expected return of 6.8% with a minimum portfolio risk. How much money should you allocate to these three assets?
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