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Business, 02.07.2021 01:00 yami85

Suppose an investor is considering three stocks in which to invest. The expected return for stock 1 is 10%, for stock 2, 12%, and for stock 3, 7%, and she would like an expected return of at least 10%. Clearly one option is to invest everything in stock 1; however, this may not be a good idea because the risk might be too high. Research has found the variance-covariance matrix of the individual stocks

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