Q6. Gamma Ltd and Delta Ltd. have the following details : Risk (S D) Return B Ltd 25% 30% V Ltd 20% 22% -0.40 Construct the minimum risk portfolio using Markowitz Model. Also calculate the return and risk of that portfolio. Show the benefit of diversification.

Q6. Gamma Ltd and Delta Ltd. have the following details : Risk (S D) Return B Ltd 25% 30% V Ltd 20% 22% -0.40 Construct the minimum risk portfolio using Markowitz Model. Also calculate the return and risk of that portfolio. Show the benefit of diversification.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q6. Gamma Ltd and Delta Ltd. have the following details:
Risk (S D)
Return
B Ltd
25%
30%
V Ltd
20%
22%
-0.40
Construct the minimum risk portfolio using Markowitz Model. Also calculate the return and risk of that
portfolio. Show the benefit of diversification.

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