The minimum variance portfolio of GM and Ford is weighted 2/3 GM and 1/3 Ford, the expected return of GM is 10% and its variance is 0.003. Ford's expected return is 15%, its risk- free rate is 5%, and the covariance of Ford and GM is 0. What is the VARIANCE of Ford?.

The minimum variance portfolio of GM and Ford is weighted 2/3 GM and 1/3 Ford, the expected return of GM is 10% and its variance is 0.003. Ford's expected return is 15%, its risk- free rate is 5%, and the covariance of Ford and GM is 0. What is the VARIANCE of Ford?.

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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