Graph the opportunity set and the zero variance point

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Question: Given that assets X and Y are perfectly correlated such that Y = 6 + .2X and the probability distribution for X is

Portability                    X

     1.                          30%

     2.                          20

     3.                          15

     4.                          10

     5.                         -50

What is the percentage of your wealth to put into asset X to achieve zero variance? Graph the opportunity set and the zero variance point.

 

Reference no: EM131443493

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