Assume that the universe of investable securities is composed solely of risky assets A and...

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Accounting

Assume that the universe of investable securities is composed solely of risky assets A and B.

Knowing the expected returns and volatilities of risky assets A and B (from Part 1), complete the approximate tabulation below (based on 20% increments) :

Portfolio

Weight A

Weight B

E(Rp)

St Dev (Rp)

P1

0.00

1.00

P2

0.20

0.80

P3

0.40

0.60

P4

0.60

0.40

P5

0.80

0.20

P6

1.00

0.00

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