Assume that the % expected return for security A and the market M for a good,...

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Assume that the % expected return for security A and the marketM for a good, normal and bad economy (probabilities .3,.4,.3) are20, 16, and 10 for A and 8, 4, and 12 for M. Also assume that youinvest 40% in A and 60% in M. Compute the % of your assets toinvest in A to minimize the risk of the portfolio.

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Assume that the % expected return for security A and the marketM for a good, normal and bad economy (probabilities .3,.4,.3) are20, 16, and 10 for A and 8, 4, and 12 for M. Also assume that youinvest 40% in A and 60% in M. Compute the % of your assets toinvest in A to minimize the risk of the portfolio.

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