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    Domination of security

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    Assume that you are currently holding security O, and that (E , ) = (7, 3).
    You are considering a portfolio consisting of risk free security F with RF = 3, and a risky
    security I with (ERI, ) = (10, 4). The objective is to equalize the risk of this portfolio to
    the risk of security O.

    Does a portfolio dominates security O.
    If it does, decide can I decide how an investment of $100,000 should be distributed among securities F and I.

    © BrainMass Inc. brainmass.com February 24, 2021, 2:25 pm ad1c9bdddf
    https://brainmass.com/math/linear-programming/current-domination-security-19395

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    Assume that you are currently holding security O, and that (E , ) = (7, 3).
    You are considering a portfolio consisting of risk free security F with RF = 3, and a risky
    security I with (ERI, ) = (10, 4). The objective is to equalize the risk of ...

    Solution Summary

    The expert examines portfolio dominate security. The investment of distributed among securities are found.

    $2.19

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