What would the expected rate of return on this portfolio be

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Reference no: EM131235288

1. If there are two risky portfolios that have a correlation of -1 with positive investment weights, what would the expected rate of return on this portfolio be?

2. Compute the covariance of H and F.

3. Would the tangency portfolio invest in more or less H if the risk-free rate were 3% instead of 4%? (Hint: Think visually.)

Reference no: EM131235288

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