Ahmed Fadhili has decided to invest 1 million dollars by purchasing shares of two companies namely;...

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Finance

Ahmed Fadhili has decided to invest 1 million dollarsby purchasing shares of two companies namely; ABC Ltd and XYZ Ltd.The projections of returns from the shares of the two companiesalong with their probabilities are as follows
Probability.     Returns(ABC).      Returns(XYZ)
0.20                    12%.                         16%
0.25.                   14%.                         10%
0.25.                    -7%.                          28%
0.30.                    28%.                          -2%
Required
The proportion of each of the above shares required to formulatethe MINIMUM RISK PORTFOLIO

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Ahmed Fadhili has decided to invest 1 million dollarsby purchasing shares of two companies namely; ABC Ltd and XYZ Ltd.The projections of returns from the shares of the two companiesalong with their probabilities are as followsProbability. Returns(ABC). Returns(XYZ)0.20 12%. 16%0.25. 14%. 10%0.25. -7%. 28%0.30. 28%. -2%RequiredThe proportion of each of the above shares required to formulatethe MINIMUM RISK PORTFOLIO