# Assets - Investment Proportions in Minimum-Variance Portfoli

Not what you're looking for?

Problem:

There are three assets that one could invest. A is a risk-free asset with that yields a rate of 8%. The other two assets, B and S are risky asset with the following attributes.

Asset Expected Return Standard deviation

A

B 12% 15%

S 20% 30%

Correlation between assets B and S is 0.1.

To determine the investment proportions in the minimum-variance portfolio of the two risky funds, the expected value and standard deviation of its rate of return. I did the following ... {see attachment}

##### Purchase this Solution

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Lean your Process

This quiz will help you understand the basic concepts of Lean.

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

##### Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

##### Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

##### Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.