Question:YearBlandyGourmangeAverage annual return6.4%%9.2%Standard deviation of annual return25.2%38.6%Correlation betwe...
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Question:
Year | Blandy | Gourmange |
Average annual return | 6.4%% | 9.2% |
Standard deviation of annual return | 25.2% | 38.6% |
Correlation between Blandy and Gourmange | 0.11 | |
You currently have $300,000. You want to invest it in the following three assets: 10-year US Treasury bond with coupon raate 3.8%, Blandy and Gourmange stocks below:
Your goal is to have the expected return of 6.8% with a minimum portfolio risk. How much money should you allocate to these three assets?