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Consider two assets, A and B. The correlation of returns between asset A and B is zero. Starting with the formula for the variance of a portfolio composed of the two assets, derive an expression for the weight placed in asset A and the weight placed in asset B for the minimum risk portfolio. Firm A is a factory that makes models of tiny factories, and firm B is a factory that makes models of factories that make models of tiny factories.

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Financial Management, Finance

Category:- Financial Management
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